Asian stocks pick up steam as hopes of policy support lift China

SHANGHAI- On Wednesday, June 20, 2018- Asian stock accelerated with an inexpert height on afternoon trade, after a wobbly morning session. In China, markets also showed the losses into gains as investors appeared to take heart from indications of government support.

S&P 500 futures ESc1 showed higher rate, rising up to 0.3 percent and highlighting with possible gains on Wall Street after major U.S. indexes closed down till late Tuesday.

On Monday, Washington threatened to impose a 10 percent tariff on $200 billion of Chinese goods after Beijing decided to raise tariffs on $50 billion in U.S. goods, in response to similar tariffs on Chinese goods announced this Friday. Also, the yield on benchmark 10-year Treasury notes US10YT=RR rose to 2.9022 percent on Wednesday afternoon after earlier falling to 2.8820. The two-year yield US2YT=RR, which rose with traders’ expectations of higher Fed fund rates, was at 2.5535 percent.

On Tuesday, through a working paper, China’s central bank said, “the country should cut banks’ reserve requirement ratios (RRR) to boost market liquidity, highlighting concerns over trade, a day after the central bank governor urged investors to remain calm”. They also added, “It is fair to say an RRR (cut) seems imminent … the only question is the magnitude”.

On Tuesday, a White House trade adviser said that Beijing has underestimated the U.S. president’s resolve to impose more tariffs. The rose in share markets comes despite trade tensions between the United States and China showing few signs of easing.

Investors in cryptocurrencies had also faced losses after hearing the news from “South Korean virtual currency exchange Bithumb” being hacked and around 35-billion-won worth of virtual currency held at the exchange was also stolen.

by Sawan Kumar on June 20, 2018

Related Articles