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Analysis News:::2020-08-03

Asian stocks move negatively, while US shows steady growth


Asia-Pacific's major stock indexes failed to agree on a single trend and showed movement in different directions on Monday. The main news, which was so differently perceived by the trading platforms, was the increase in the number of coronavirus infections in the region.

In addition, a significant impact on the markets occurred against the backdrop of a speech by the Secretary of State of the United States of America, who made it clear that the President of the country was preparing sanctions measures against some companies from the PRC, mainly companies in the technology sector that develop software. According to US intelligence, these corporations pose a direct threat to national security as they transmit data from America directly to Beijing. The issue of imposing sanctions of this kind has already been raised within the walls of the White House. So, earlier the authorities have already proposed to introduce restrictions on the operation of applications developed in China, such as TikTok, WeChat, etc. However, so far no measures have been taken, and now the time has come for these decisive steps.

Japan's Nikkei 225 Index went up by 2.2%. The final summed up statistics show that economic growth in the country in the first quarter slowed down by 0.6% compared to the previous indicator. In addition, in the fourth quarter last year, it also turned out to be 1.9% lower than the previous one. Two consecutive cuts in the indicator speak of the onset of a recession, which the country faced for the first time in almost five years. Economic activity and consumer demand are two indicators that have dropped significantly in Japan amid the coronavirus pandemic. Private consumption fell by 0.8% between January and March, while government spending, on the other hand, increased significantly.

China's Shanghai Composite Index, unlike its Japanese counterpart, began to grow by 1.1%. The Hong Kong HangSeng index, on the other hand, did not support the positive dynamics and rushed downward by 0.8%. In the second month of summer, the PMI index in the Chinese industry sector increased again, and this is the fourth rise in a row, which cannot but inspire Chinese investors. To date, this indicator has been able to reach its maximum level in almost nine years. Now it is at around 52.8 points, while the previous value was in the 51.2 point limit. The reason for this positive was a significant increase in consumer demand in the country, which happened immediately after being able to manage the coronavirus crisis in the country itself.

South Korea's Kospi index also slightly went up by 0.1%.

Australia's S & P / ASX 200, on the other hand, was negative, which, however, was almost imperceptible with a decrease of 0.03%.

Meanwhile, growth is mostly observed in the US stock market on Monday. The main support for the market comes from the increase in the value of securities of companies in the technology sector.

The Dow Jones Industrial Average stock indicator increased by 0.41% or 108.31 points, which allowed it to move to 26536.63 points.

The Standard & Poor's 500 index rose by 0.45% or 14.79 points, which moved it to the area of 3285.91 points.

The Nasdaq Composite index became the leader of growth today, with an increase of 1.08% or 116 points. Its current level is located within 10861.28 points.

The previous trading on the US market also closed in the green. Investors were playing back the growth statistics of some of the tech giants. DowJones grew 0.44%, the S&P 500 gained 0.77%, and the Nasdaq Composite jumped 1.49% altogether.

In addition, a positive reaction began to be noted after the release of news about the beginning of the third phase of trial studies of a potential vaccine against coronavirus infection. Market participants are enthusiastic about everything that is bringing the end of the global COVID-19 pandemic closer. Meanwhile, the number of cases in the US is again breaking records, reaching 1.9 million in the second month of summer. At present, the total number of infected cases in the country is already more than 4.6 million.

Market participants also do not stop watching how the discussions of new measures of financial support for the country's citizens during the pandemic are progressing. Republicans and Democrats again failed to reach a consensus on the size of the unemployment premiums. Recall that the previous allowance was $ 600 per week and was paid until the end of July.

The authorities are determined to cut payments to $ 200 a week, but Democrats are not backing down and are firmly on maintaining the same volume of the stimulus.

This week, investors are also awaiting statistics on the unemployment rate in the US, perhaps these indicators will finally push the government to make final decisions.

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