On Monday, the meeting was held between the U.S. president, Donald Trump and president of China, Xi Jinping to resolve the disputes associated with the current trade war. In the end, the trade talk was not able to improve the U.S.-China trade relations and led to the conclusion that from December 2018; Trump Administration would impose 25% of tariff over the Chinese imports, along with its planning to target the remaining Asian markets.
Chinese stock market trade varied on Tuesday after it was reported that the U.S. Administration would impose huge taxes over the Chinese imports. In contrast to this, U.S. stock market elevated during early Tuesday trade, after the Asian market trading closed for the day. The reason behind the rise in U.S. stock trade index was the announcement by Donald Trump in an interview that the nation would make a deal with China.
The consequences of the expanding trade war have been reflected in the Asian stock market. After Monday, there seemed a decline in the Hong Kong stocks. HSI (Hang Seng Index) fell by 0.9%. Bank of China, Hong Kong stock value plunged by around 7%, leading to its inadequate earnings for the third quarter of the year.
SHCOMP (China’s Shanghai composite) share value spurred by 1% after the day of the stock stumble and the stock value of Shenzhen Composite escalated by 0.9% covering the early losses. Liquor stocks have been declining, with the descending in stock value of Kweichow Moutai by 4.5%. However, an insurance company, Ping propped up by a buyback plan with its record share.
The share value of the Japanese market boom making huge revenues along with counterbalancing the earlier downfall in stocks related to the energy sector with a stock index of the NikkeiNIK raised by 1.4%. Banks and other financial groups directed upwards with Mitsubishi UFJ shown growth by 2.2%. However, due to the decline in crude oil prices, Impex stock value plunged by 3.2%.