09 December 2019
This Monday, December 9, it became known that stock markets in the Asia-Pacific region to quickly grow. At the moment we know that the Japanese stock index Nikkei 225 rose 0.3%, South Korean KOSPI - on 0,35%, Hong Kong's Hang Seng rose marginally, by only 0.05% in the time, as Australia's S&P/ASX 200 rose 0.44%, however, it is worth noting that China's Shanghai Composite still showed no change.
The culprit of the imbalance in the stock markets today is the economic and trade tension between Washington and Beijing. Larry Kudlow, which is an economic Advisor at the White house last week commented on the fact that both parties approach the final straight regarding the interim trade agreement. The only obstacle is the administration of the American President Donald trump, which can cancel the agreement, if China does not fulfill the specified conditions.
Larry Kudlow says “a Deal is close. Perhaps even closer than it was in the middle of November.” The EA indicates that December 15 is an important date for US as it is planned to increase tariffs on some Chinese goods. It is worth noting that the tension between the two leaders is only heating up, especially after Washington toughened its stance on Beijing's policy in respect of Hong Kong and Xinjiang.
At 8:00 GMT the government of Japan has published the statistical data, which indicated that GDP growth in the quarter of 2019 has increased significantly. From July to September, the economy grew by 1.8% in annual terms, after rising by 2% higher than in the previous quarter.
After the weekend it was reported that in November 2019, the volume of Chinese exports has decreased significantly due to the weakening of global demand and long-term trade and economic conflict with the United States. If we consider the figures, China's exports in dollar terms fell by 1.1% for the year, until 221,74 billion USD, according to statistics from the General administration of customs of China. However, with imports the situation is much better, as published data indicated growth for the first time in 7 months, rising by 0.3% and reaching 183,01 billion USD.
In the financial sector of China is not so smooth. This year, the foreign exchange reserves of Beijing, which are the largest in the world, decreased by 0.3% (9 billion USD), accounting for the same period in 3,096 USD trillion, data released by the Central Bank of the country.