Asian stocks close mixed, with tensions between the US and China and waiting for Powell

Asian stock markets closed without a single direction this Tuesday (7), amid geopolitical tensions between the US and China and waiting for speeches from the president of the Federal Reserve (Fed, the US central bank), Jerome Powell.

In mainland China, the Shanghai Composite index fell 1.11%, to 3,285.10 points, and the less comprehensive Shenzhen Composite index fell 2.02%, to 2,108.72 points, after Chinese Foreign Minister Qin Gang criticized strongly the US for deteriorating bilateral relations and Washington’s support for Taiwan, in his first press conference since taking office.

The mood reached Hong Kong, where the Hang Seng ended the session down 0.33% at 20,534.48 points.

With attention turned to geopolitics, the fact that Chinese exports suffered a smaller than expected annual decline in the first two months of 2023, of 6.8%, is in second place.

Elsewhere in Asia, the Japanese Nikkei rose 0.25% in Tokyo, to 28,309.16 points, while the South Korean Kospi was practically stable in Seoul, with a marginal increase of 0.03%, to 2,463.35 points, and Taiex advanced 0.60% in Taiwan, at 15,857.89 points.

Investors from the Asian region and other parts of the world are waiting for Powell to testify before the US Congress. The expectation is that, today and tomorrow, the head of the US Central Bank will give signs of the pace at which US basic interest rates will continue to rise in the coming months.

In Oceania, the Sydney stock exchange was in the blue, after comments from the central bank of Australia signaled that the trajectory of high interest rates in the country may be approaching the end. The S&P/ASX 200 advanced 0.49% on Tuesday to 7,364.70 points.

The RBA, as the central bank of Australia is known, raised its benchmark rate by 25 basis points to 3.60%, as expected, but also said that domestic inflation may have peaked.