Last week the scandal regarding the impeachment inquiry affected the stock markets in the U.S. as well as abroad. This decision also influenced the stock markets across the ocean. Asian stock markets faced two major problems; one of them is the impeachment and the second one is China’s economy.
It is no secret that political climate and regional tensions can disrupt the stock markets across the globe. It is too early to say whether Donald Trump will have to leave his post. Nevertheless, even an inquiry will affect his political career.
On September 25, House Speaker Nancy Pelosi made an announcement which may affect the stock markets in the long run. As mentioned above, such accusations are bad news for the stocks
Another important event which influenced the stocks was the data released by The National Bureau of Statistics of China. This information helped to learn more current state of affairs of China’s economy. Industrial profits in China decreased by 2% in August in comparison with the results from 2018. It is essential to mention that industrial profits rose by 2.6% in July. Another interesting fact is that profits fell by 1.7% on year.
The bureau of statistics said that producer prices in China fell into deflation in August. This factor created additional pressure on the companies. Chinese companies since the beginning of the trade war are trying to minimize the damage caused by the trade war.
Asian stock markets on September 27
The Hong Kong’s Hang Seng index decreased by 0.33% or 87 points to 25,954. The South Korean KOSPI Composite index fell by 1.19% or 24 points to 2,049.
Last week especially the second half of the week was a challenge for the stock markets. Asian stock indexes had to endure pressure caused by internal as well as external factors.