Mixed signs in Asia with a look at the Biden-C video conference

Mixed signs are prevailing in the Asia-Pacific stock markets, in the wake of the US and China Presidents Joe Biden and Xi Jinping, respectively, who did not reach a significant rapprochement between the world’s two largest economies.

On the board, the Japanese Nikkei gained 0.11% to 29,808.12 points, with the South Korean KOSPI to decline by 0.08%. In Hong Kong, the Hang Seng gains 1%, while in mainland China, the Shanghai loses 0.33% and Shenzen 0.17%. In Taiwan, the Taiwan Weighted closed with gains of 0.33%, while in Australia the S&P/ASX 200 “lost” 0.67%.

Mr Biden told Mr Xi that the aim of both was to ensure that their rivalry did not degenerate into “controversy”. Sino-US relations are strained by differences in the fields of trade, technology, human rights, Hong Kong and Taiwan. Xi said he was ready to “build consensus” and added that the two countries needed to improve communication between them.

The meeting “will dominate the whole day of the meeting in Asia”, despite US officials stressing that no substantial progress has been made, ActivTrades’ Anderson Alves said in a note.

Investors are turning their attention from the recent quarterly corporate results to the economic issues that will determine the level of growth in 2022. These include supply chain problems and rising inflation.

In particular, they closely monitor the impact of inflationary pressures on business activity and consumer spending.

Joe Biden’s decision to keep or replace Jerome Powell as chairman of the US Federal Reserve is also significant.

According to data on Monday, retail sales in China in October moved weaker upwards than in September, hit mainly by anti-coronary restrictions.