Asian Stocks Mixed as Trump Delays China Tariff; HKEX Makes Takeover Bid for LSE

Posted on the 12 September 2019 by Merks50 - Asian markets were mixed in morning trade on Thursday after U.S. President Donald Trump said he will postpone the imposition of 5% extra tariffs on Chinese goods by two weeks “as a gesture of good will.”

China’s Shanghai Composite and the Shenzhen Component climbed 0.1% and 0.3% respectively by 10:30 PM ET (02:30 GMT).

“At the request of the Vice Premier of China, Liu He, and due to the fact that the People’s Republic of China will be celebrating their 70th Anniversary on October 1st, we have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th,” Trump said in a tweet posted overnight.

Earlier this week, China said it will exempt a range of U.S. goods from 25% of extra tariffs. Officials from China and the U.S. are due to meet in Washington in October.

Hong Kong’s Hang Seng Index fell 0.6%. Hong Kong Exchanges and Clearing shares (HKEX) plunged more than 3% after the bourse made a billion cash-and-share takeover approach to the London Stock Exchange. The bid represents a 22.9% premium to the LSE’s latest closing price.

Reuters said the proposed deal would help HKEX to better able to compete with its U.S. rivals.

Japan’s Nikkei 225 rose 0.9%. Cabinet Office data showed the country’s machinery orders slipped 6.6% in July from the previous month.

South Korea’s KOSPI also gained 0.9%.

Down under, Australia’s ASX 200 traded 0.4% higher.

Investors now await a European Central Bank meeting later in the day. The central bank is expected to add further stimulus to support the region’s economy.

Back to Featured Articles on Logo Paperblog