Globally, the stocks are moving higher on Tuesday as the Bank of Japan hinted at further monetary policy easing and a new round of talks between the US and China to resolve their trade war get underway in Washington.
The Sino-American talks to end a damaging trade war will resume today in Washington, following a successful round of talks last week in Beijing.
Earlier, Beijing said that the US is trying to limit the technological development of Chinese companies by influencing the decision of third parties to use the technologies they offer.
Donald Trump’s administration has urged other countries to avoid using Huawei’s infrastructure, saying that such equipment is used to transmit sensitive information to the Chinese government.
Huawei denies accusations of helping espionage in favor of Beijing.
Asian markets recap
The main stock indexes in the Asia-Pacific ended the trading session without a single direction against the renewed cybersecurity issues between the US and China.
The Japanese blue-chip index Nikkei 225 reported a slight increase of 0.10% to 21,302.65 points. The shares of Fast Retailing declined by 0.63%. Earlier today, the Governor of Bank of Japan, Haruhiko Kuroda, said the bank was ready to boost incentives if the sharp rise in the yen hit the economy and inflation rate. In his words, the Bank of Japan will carefully assess the benefits and costs of any further relaxation of its policy, which implies that the obstacles to increasing incentives will be high, especially given the weak earnings of banking institutions in recent years against the almost zero interest rates.
On the Chinese markets, the continental index Shanghai Composite added 0.05% to its value and ended the day at 2,755.65 points. Hong Kong’s index Hang Seng fell by 98.86 points, or 0.35%, to 28,248.15 points. HSBC’s shares, which are traded on the Hong Kong Stock Exchange, declined by 1.48% after the lender announced its corporate earnings report for 2018, which did not surpass analysts’ forecasts.
In South Korea, the index Kospi dropped by 0.24% to 2,205.63 points
The Australian S&P ASX 200 gained 0.28% to 6,106.90 points. Blackmores shares fell by 24.85% after the company announced a weak forecast for the second half of its fiscal year due to sluggish sales in China.
Investors continue to await the outcome of ongoing Chinese and US sales talks in Washington this week.
European markets mid-session recap
The German index DAX 30 is down by 0.04% to 11,294.47 points at 10:40 GMT. Wirecard jumped over 8% to extend Monday’s rally after the financial regulator BaFi banned short selling in the stock amid reports that German authorities are probing into a possible violation of securities trading rules. HeidelbergCement soared 4% after forecasting higher demand after reporting a 10% rise in group revenue for the fourth quarter. Fashion company TOM TAILOR Holding advanced 11% amid reports that it will implement a capital increase of 10% against cash contribution with partial utilization of the approved capital.
British index FTSE 100 is down by 0.45% to 7,188.69 points ate mid-session on Tuesday, after blue-chip heavyweights HSBC and BHP disappointed, while mid-cap baker Greggs surged to a record high after it said it expected higher full-year profits. BHP Group fell by 1.3% after first-half underlying profit at the world’s biggest miner fell by 8% as copper earnings slumped. But InterContinental Hotels rose by 1.4% as strong demand in China helped full-year room revenue grow.
Wall Street pre-session recap
Wall Street stock futures were flat to lower Tuesday as traders waited for new details to emerge from the latest round of US-China trade talks.
As of 5:50 a.m. ET, Dow futures indicated a drop of nearly 20 points at the open. S&P 500 and Nasdaq futures were barely changed. Markets are set to open Tuesday after the long Presidents Day weekend.
On the earnings front, Walmart is due to report its latest results at 7 a.m. ET. Investors are likely to pay attention to the retail giant’s online sales performance as it battles Amazon for e-commerce dominance.
Also, traders will be on the lookout for the National Association of Home Builders housing market index on Tuesday and are anticipating minutes from the Federal Reserve’s latest policy meeting and other economic data later in the week.