- From Shanghai to Singapore, stock markets trade higher
- Sydney’s S&P-ASX 200 drops slightly
- Strong quarterly results continue to drive stock prices higher
Asian stock markets have been following Wall Street’s example and trading higher today, with robust corporate profits helping to counteract fears related to the growing China-US trade dispute.
The Shanghai Composite Index increased by 1.3% to reach 2,740.73. In Tokyo, the Nikkei 225 was 0.5% higher at 22,627.05. Singapore’s stock exchange also gained, while in Hong Kong, the Hang Seng strengthened by 1% to 28,082.80.
In South Korea, the Kospi traded 0.3% higher at 2,292.97. At 6,245.70, however, Sydney’s S&P-ASX 200 was 0.1% lower, while other South Asian stock exchanges also lost value.
On Wall Street, American stocks ended higher on a wide front for the third day in a row after improvements in retail, media and technology stocks. In the financial sector, Warren Buffett’s Berkshire Hathaway was the biggest winner. Investors generally chose to concentrate on strong quarterly results yesterday and forget about the escalating trade conflict between the United States and China for the moment.
Company profits have surged this year thanks to strong economic growth and the tax cuts for corporations. The Dow Jones Industrial Average recorded a 0.2% gain to 25,502.18. The S&P 500 gained 0.4% to 2,850.40. The Nasdaq also ended 0.6% higher at 7,859.68.
Pepperstone Group’s Chris Weston said: “Highly impressive US corporate earnings, it seems, are inspiring the bulls at present and with no one prepared to act aggressively on the macro news flow, micro factors are supporting. But for how much longer?”
He pointed out that there were broader issues that might bring about volatility. The biggest one of these, he said, was the ongoing trade war between the United States and China. He believes that over the next two months, this will start affecting markets more heavily.