Asian Shares Slip On Geopolitical Worries

Asian stocks fell broadly on Tuesday as investors adopted a cautious stance amid heightened tensions surrounding the Korean Peninsula.

North Korea’s top diplomat said on Monday that a weekend tweet by U.S. President Donald Trump counted as a declaration of war and North Korea has the right to take countermeasures, including shooting down U.S. bombers, even in international space.

Chinese stocks closed slightly higher after three days of losses. The benchmark Shanghai Composite index edged up 2.03 points or 0.06 percent to 3,343.58, led by gains in property developers and resource stocks. Hong Kong’s Hang Seng index was marginally higher at 27,516 in late trade.

Japanese shares slipped from a two-year high as a stronger yen weighed on exporters and tech stocks also moved lower, tracking losses among their U.S. peers overnight.

The Nikkei average fell by 67.39 points or 0.33 percent to 20,330.19 while the broader Topix index closed marginally lower at 1,672.74. Advantest, Tokyo Electron and Murata Manufacturing declined 2-3 percent.

Prime Minister Shinzo Abe said at a news conference Monday that he will dissolve the lower house of parliament on Thursday and call a snap election for next month.

The minutes from the Bank of Japan’s July monetary policy committee meeting showed that policymakers like to stick with their current policy framework despite the recent developments in consumer inflation being relatively weak. Overseas economies are growing steadily, leading to a bump in exports, the minutes added.

South Korea’s Kospi average fell 6.08 points or 0.26 percent to 2,374.32, with tech stocks coming under heavy selling pressure after reports that Apple suppliers were asked to scale back shipments of parts for its upcoming iPhone X.

Market heavyweight Samsung Electronics fell 3.7 percent, rival LG Electronics tumbled 3 percent and chipmaker SK Hynix lost nearly 5 percent.

Australian shares ended lower even as energy stocks rallied after oil prices jumped to their highest for more than two years on Monday. The benchmark S&P/ASX200 and the broader All Ordinaries index both dropped around 0.2 percent to end at 5,671 and 5,729.60, respectively.

Miners BHP Billiton and Fortescue Metals Group shed 1-2 percent while banks ANZ and Commonwealth and ended down half a percent and 0.9 percent, respectively. Oil Search, Santos and Woodside Petroleum jumped around 3 percent after oil prices rose more than 3 percent on Monday as Turkey threatened to shut down Kurdish crude…

Read the full article from the Source…

Leave a Reply

Your email address will not be published. Required fields are marked *