During Christmas holidays most of the markets are closed, but those being open suffer from hard pressure. The spirit of Christmas missed stock exchanges in Asia with only Japanese stocks finishing the trading session on a green, but correcting the terrible performance from the last day. Wall Street indicates for a slight decrease, but indexes remain stable around the support levels.
Meanwhile, there were signs of improvement of the trade tensions between the US and China. Chinese authorities have published a reduced “blacklist” for foreign investment in the national economy.
The measures adopted will not only foster the further opening of China’s economy to the world but will also allow a favourable business environment for foreign investors.
The document, which was published by the State Council on Development and Reforms along with China’s trade ministry, includes 151 sectors to which foreign investors have no access or is restricted. The previous version of the list included 177 areas of activity, wholly or partially closed to foreign investment.
In recent years, Chinese authorities have paid particular attention to the opening of the country’s market and create the necessary conditions for foreign investors. According to official data last year, the total volume of foreign direct investment in China was 136 billion USD, while in 2016 it was 134 billion USD.
Asian markets recap
Japanese stocks recorded strong growths on Wednesday after the Christmas drop of Nikkei 225 and Topix. The Japanese blue-chip index Nikkei 225 grew by 0.89% and ended the stock exchange session at 19,327.06 points, while the smaller index Topix engined with a 1.12% growth, ending at 1,431.47 points.
The stocks of Fast Retailing, the company behind the stores chain Uniqlo, changed the overall positive trend in Japan after decreasing by 0.92% during the day. The move happened after the average stock price collapsed by about 5% on Tuesday, placing the index on the bearish territory as it was about 20% below the peak it reached in October. Topix also finished with more than 4.8% drop yesterday.
In South Korea, Kospi shrank by 1.31% and ended the trading session at 2,028.01 points after Samsung Electronics fell to 1.16%.
Mainland China stock exchanges, which were carefully monitored for the trade dispute between Beijing and Washington, were also in red. Shanghai Composite wiped out about 0.26% and finished the session with 2,498.29 points. Shenzhen Composite also decreased by 0.42% to 1,279.79 points, while the Shenzhen Component dropped by 0.584%, ending at 7,289.55 points.
Stock exchanges in Australia and Hong Kong are closed for holidays.
Wall Street pre-session recap
The US stock futures pointed to a negative Wednesday morning in the wake of Wall Street’s steep fall on Monday.
On Wednesday early morning stateside, Dow Jones Industrial Average futures were reasonably volatile, but, as of 3:45 AM ET, implied an opening decline of 20.20 points. S&P 500 and Nasdaq futures also pointed to negative moves for when the indexes open on Wednesday with expected decreases of 1.10 and 7.35 points, respectively.
American exchanges were closed on Tuesday for the Christmas holiday, but stocks are inheriting downside momentum from a Monday plunge when they recorded their worst Christmas Eve trading ever — and the S&P 500 entered a bear market.