On October 8, all stock exchanges in Asia resumed its daily operations after the week-long holidays in China. The citizens of the People’s Republic of China celebrated the most important in the history of this country. Exactly 70 years ago Mao Zedong announced the creation of the People’s Republic of China.
The holidays are over in China. However, the first day after the holiday’s stocks experienced problems across Asia. This is not surprising because the major event which will affect the stock markets is the meeting of U.S. and Chinese officials. The situation is quite tense one day before the meeting as the U.S. blacklisted 28 Chinese companies. China’s foreign ministry said to stay tuned and right now it is not clear how China will respond to this decision.
As mentioned above, the U.S. expanded its trade blacklist to include top Chinese artificial intelligence companies. Another important information is that the U.S. will increase the tariffs, which are already in place starting from October 30. It means that tariffs on $250 billion worth of Chinse products will reach 30%. U.S. President Donald Trump stated if no progress is made the U.S. is going to make this decision.
Asian stock markets on Wednesday
Despite all of the problems, mainland Chinese stocks strengthened their position. For example, the Shanghai Composite index rose by 0.39% to around 2,924.86. The Shenzhen component index increased by 0.34% to 9,506.56. Another major Chinese index, which is the Shenzhen composite increased by 0.654% and is close to 1,609.10.
However, Hong Kong’s Hang Seng index fell by 0.61%.
In Japan, the Nikkei 225 fell by 0.61% to 21,456.38. Another Japanese index Topix decreased by 0.3% and is close to 1,581.70.
The shares of some Japanese companies also decreased on Wednesday. The shares of Sharp dropped 2.88%. However, Murata Manufacturing’s shares increased by 0.16%.
The Asian stock markets in Asia are mixed as it hard to predict how the meeting between the U.S. and Chinese representatives will end on October 10.