Asian Stock Markets Rise Following Xi-Biden Summit
While Seoul and Sydney dropped, the three markets which form the region’s economic heft, Shanghai, Tokyo and Hong Kong, advanced.
Following the virtual summit held between US President Joe Biden and Chinese President Xi Jinping on Tuesday, the Asian stock market saw a notable rise.
While Seoul and Sydney dropped, the three markets which form the region’s economic heft, Shanghai, Tokyo and Hong Kong, advanced.
Despite officials at the White House having “tempered expectations for any meaningful progress,” the positive reception of the summit elevated the value of the main Asian markets notably as Xi told Biden that he was ready to “build consensus” and that both sides need to improve communication.
The US President also noted to his Chinese counterpart that their goal should be to guarantee competition “does not veer into conflict.”
Subsequently, the Hang Seng in Hong Kong was 1% higher at 25,658.04, while the Shanghai Composite Index rose 0.3% to 3,543.46 and Tokyo’s Nikkei 225 added less than 0.1% to 29,783.18.
Remaining in the Asian market, Syden’s S&P-ASX 200 lost 0.8% to 7,413.20 with Kospi in Seoul shed 0.2% to 2,994.40.
On the other hand, the S&P 500 declined to 4,682.80 on Wall Street, with Nasdaq losing less than 0.1% to 15,853.85. The Dow Jones Industrial Average remained relatively unaffected, losing less than 0.1% to 36,087.45.
The focus of investors is currently shifting towards economic issues that will determine growth into 2022, instead of the usual corporate profits. These issues are chiefly comprised of rising inflation and supply chain problems.