All Asian stock indexes are watching Trump and Xi's next move. (Image via: Wise Owl)

Asian Stocks Keep an Eye Out of Trump's Moves

The trade wars shook the whole nation, especially Asia. All major Asian shares are keeping an eye out of US, since the trade talks between US and China did not end as expected. The world expected that the conflict could be resolved soon, in order to bring balance to the market once more.

Nonetheless, instead of that, Donald Trump and Xi Jinping are throwing tariff raises onto each other. With this, the tension only intensified even more. Yesterday (11/6), Trump stated that he was open to talks with Xi, if only Xi would comply to his “five policies”. These 5 policies were not revealed however.

Looking for scapegoats, Trump blamed Federal Reserve for the astronomical interest rates and being clueless about that. Trump also accused that other currencies, except US dollars, were devalued; hence, disadvantaging US dollar. 

US inflation could result in an early cut to the interest rates, however. On the other hand, Chinese is enjoying 1.6% increase on their inflation’s rate, and they are aiming for more stimulus. Because the price of pork became astronomical, it saved China by 2.7% inflation for 15 months period.

The current condition is as follow: Japanese Nikkei index is being hesitant, and Shanghai’s Blue Chips index went down 0.3%, prior to their 3% leap yesterday.

Source: https://uk.reuters.com/article/uk-global-markets/asia-shares-wary-of-trump-wait-on-us-inflation-idUKKCN1TD038?rpc=401&