Recently, most of the Asian shares were higher with the Wall Street rallying on USA’s decision to grant Huawei, which is a Chinese telecom giant an extension of three months for buying equipment from suppliers in America.
This decision has inspired the buying mood in investors who were eagerly waiting for any progress signs in the US-China trade war.
In the morning trade, Nikkei 225 which is the benchmark for Japan had gained 0.4% to 20,653.93. S&P/ASX 200 in Australia added 0.7% to reach 6,510.40. Kospi in South Korea gained 0.3% to reach 1,946.30, while Hang Seng in Hong Kong was down by 0.2% to reach 26,234.85. There was little change observed in the Shanghai Composite as it inched down less than 0.1% to reach 2,881.06.
S&P 500 1.2% or 34.97 points to 2923.65 on the Wall Street, there was a rise of 1% or 249.78 points observed in the Dow Jones Industrial Average. NASDAQ which weighs heavily with technology related stocks saw a rise of 1.3 % or 106.82 points to 8002.81. There was a gain of 15.21 points to 1508.85 in the Russel 2000
Investors have been recently debating the possibilities of a recession in the near future in United States. This is a major concern caused by the conflict in trade among USA and China which are the two biggest economies in the world.
President of United States, Donald Trump had announced earlier that he effectively planned to extend tariff across all the imports from China, many of which were consumer based products that were earlier exempt from the initial tariffs. The tariffs, though delayed will eventually be implemented and will raise the cost for companies in U.S.A. who are looking to import goods from China