|Day's range||9,770.87 - 9,851.29|
|52-week range||9,400.69 - 11,270.18|
Bloomberg Opinion columnist Tim Culpan said that savvy investors would do well not to get caught up in the fluff and hype of the famous sales event. The one notable exception was China: The Shanghai Composite Index erased earlier losses to climb for the first time in six days as Premier Li Keqiang promised more support for the private sector over the weekend. Analysts have trimmed their estimates without mercy -- Goldman Sachs cut its target price by 17 percent, after CICC lowered its projection by 16 percent last week, data compiled by Bloomberg show.
Then crude oil entered a bear market and alarm bells rang on China’s slowdown as tech stocks plunged. The MSCI Asia Pacific Index slumped 1.2 percent Friday, worsening the wipeout that already erased $4.3 trillion of market value this year. It’s anyone’s guess how regional stock markets will do on Monday but it isn’t looking good right now: the S&P 500 Index dropped 0.9 percent Friday and futures contracts on the Nikkei 225 fell.
The hope is that Presidents Donald Trump and Xi Jinping will come up with an agreement, says DBS Group Research, noting that a split Congress should have no bearing on the handling of the negotiations.
Yes, President Donald Trump did say he thinks the U.S. will reach a trade deal with China. White House economic adviser Larry Kudlow downplayed the potential for a quick agreement, crimping early gains in American equities on Friday despite a jobs report that showed nonfarm payrolls rose more than forecast. Hong Kong’s Hang Seng Index sank the most, erasing about half of its Friday surge.
Thursday’s boost came from China: the nation’s leadership signaled that further stimulus measures are being planned, as disappointing economic data showed that the current piecemeal approach isn’t working. Chinese shares rallied earlier in both domestic markets and Hong Kong, but the Shanghai Composite Index reversed most of the gain and closed a mere 0.1 percent higher. The Hang Seng Index closed 1.8 percent higher.
Same with the MSCI Asia Pacific Index, which climbed as much as 0.6 percent in early trading, boosted by the Japanese gauge. The culprit of course was China: as soon as the market opened, the Shanghai Composite Index fell in red waters and closed down more than 2 percent, while better-than-expected results from HSBC Holdings Plc helped Hong Kong’s Hang Seng Index erase its drop. Peaking earnings growth and a slowing economy have become constant sources of worries, and Monday’s 10 percent plunge -- the daily limit -- in Chinese liquor maker Kweichow Moutai Co. only added fuel to the fire, raising concerns about the consumer outlook in the world’s second-biggest economy.
On Tuesday, market watchers saw slumps of 1-3 percent for almost every single major benchmark gauge in Asia. Despite added support from officials, Chinese stocks have returned to their losing ways after a two-day rally of almost 7 percent. Japan’s Topix index fell 2.6 percent, and the MSCI Asia Pacific Index is less than a point away from bear-market territory.
Yes, Chinese and Hong Kong shares rallied after their mid-day breaks, but it took a whopping four hours for that to happen after China propped up the market earlier on Friday. The fact of the matter is, a 2 percent to 3 percent climb on Friday won’t remove China’s title as the world’s worst stock market. The bounce has certainly pulled other Asian markets up with the mainland rally (Shenzhen stocks climbed 2.6 percent) in afternoon trading, but the MSCI Asia Pacific Index was still down 0.2 percent as of 5 p.m. in Hong Kong after dropping as much as 1 percent earlier.
Investors “were expecting tariffs of 25% and instead only got ones of 10% for now so the reaction is quite positive.”
There’s little room left for further gains in Taiwan equities this year as central banks tighten, according to a survey.