Asian stocks ended the trading session this Tuesday, 15, on a high, supported by the perception that the meeting between the president of the United States, Joe Biden, and his counterpart in China, Xi Jinping, served to alleviate the growing tensions between the two major global powers. With an eye on possible stimuli, shares of the Chinese real estate sector jumped again in Hong Kong, boosting the local stock exchange. This Tuesday’s gains came despite data that reinforced the perception of a slowdown in the Chinese economy.
The Shanghai stock exchange closed up 1.64%, at 3,134.08 points, while the less comprehensive Shenzhen composite rose 2.05%, at 2,054.09 points.
On Monday, the presidents of the US and China met and struck a conciliatory tone. According to the White House, Biden reinforced that the US will not stop competing with the Chinese, but without diverting initiatives to a confrontation. Xi, on the other hand, said the recent tensions did not serve either country.
“Asian stocks rallied today, and that appears to be due to general optimism following a lengthy meeting between US President Joe Biden and Chinese President Xi Jinping at the G20 meeting yesterday, which was followed by mildly encouraging comments. on diplomatic cooperation”, evaluates ING, in a report.
The Dutch bank, however, says it is too early to see China as a key driver for the recovery of risk sentiment, given the country’s economic challenges.
On Monday night, the National Bureau of Statistics (NBS, its acronym in English) Chinese reported that retail sales fell in October, a result that contradicted the expectation of analysts. Industrial production, on the other hand, grew a little higher than expected, but slowed down from the increase registered in September.
Pantheon says October is likely to mark the nadir of China’s slowdown as economic policies shift in the country following a lull in stimulus from the Communist Party Congress that ended on Oct. 22.
In Hong Kong, the Hang Seng index closed up 4.11%, at 18,343.12 points, again boosted by shares in the technology and real estate sectors. Among techs, Alibaba and Tencent rose 11%, while JD.com advanced 8.3%. The Hang Seng real estate sub-index rose 4.4% cumulatively. Shares in both sectors operate under expectations of Chinese government stimulus and relaxation of restrictions against covid-19.
In Tokyo, the Nikkei closed with gains of 0.1%, at 27,990.17 points, even after Japan’s Gross Domestic Product (GDP) contracted in the third quarter compared to the second. Over there, financial Stor shares led, such as Sumitomo Mitsui Financial Group (+4.2%) and Mitsubishi UFJ Financial Group (+2.7%).
The South Korean Kospi ended the trading session up 0.23%, to 2,480.33 points, and Taiex, from Taiwan, rose 2.62%, to 14,546.31 points.
Oceania
Contrary to the movement of Asian stock markets, the Australian S&P/ASX 200 retreated 0.07%, to 7,141.60 points.
*With information from Dow Jones Newswires
Source: CNN Brasil
A journalist with over 7 years of experience in the news industry, currently working at World Stock Market as an author for the Entertainment section and also contributing to the Economics or finance section on a part-time basis. Has a passion for Entertainment and fashion topics, and has put in a lot of research and effort to provide accurate information to readers.
