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01.06.2020 03:52 PM
Europe and Asia stocks are trading in positive territory

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Trading on stock exchanges in the Asia-Pacific region positively began today. Almost universal growth began after it became clear that US President Donald Trump is not going to take the most extreme measures and impose sanctions in the trade sector. His presentation, although rather harsh, still was not as bad as experts had expected.

One thing is clear today, the United States intends to strip Hong Kong of its status as a global financial center, as well as of the privileges that followed. Perhaps the most significant thing that the US will do now is the removal of the status of an independent customs territory in Hong Kong. However, nothing has been done so far regarding the cancellation of the trade agreement between the United States and China, which was signed in January of this year. This supported the stock markets very well, which, one might say, was relieved because they expected much more serious measures from the US.

China's Shanghai Composite Index is up 2.2% this morning. Hong Kong's Hang Seng Index went even further to 3.4% gain.

The PMI in China's manufacturing sector last month fell below 50.6 points, while a month earlier it was 50.8 points. Nevertheless, when this index exceeds 50 points, this indicates an increase in activity in this area. When the index falls below 50 points, there should be a noticeable decrease in the activity. Recall that in China, this index is above the strategic level of 50 points for three months in a row after the devastating reduction that took place against the backdrop of the COVID-19 pandemic. The current situation indicates that an increasing number of companies are joining the work after a long and forced break. Meanwhile, there is some regression in the growth, which should alert the experts, since earlier they argued that the increase should continue, and the PMI level should pass the mark of 51 points.

In the corporate sector, the leading position in trading growth in Hong Kong today was taken by Country Garden, whose shares rose in price by 7.5%. It is followed by Sunny Optical Technology Group Co. Ltd and AAC Technologies Holdings Inc., both of which added 6.3% each. AIA Group also increased the value of its securities by 5.8%, while Tencent Holdings went up by 4.1%.

Japan's Nikkei 225 Index is up by 0.5%. This raised it above the strategic mark of 22 thousand points, which happened for the first time in the last three months.

In addition, the costs of companies began to grow in Japan. For example, in the first quarter of this year, they grew by 4.3% and recall that before this, a decrease of 3.5% was recorded. It also means that business activity is growing and the industry sector is gradually emerging from stagnation.

Securities of SoftBank Group rose in value by 3.4%. The same rise was recorded by the manufacturer of cosmetics Shiseido. Electronics maker Sony is up by 0.7%.

At the same time, a decrease was recorded in the car manufacturers market. So, Toyota Motor shares fell by 0.7%.

The South Korean Kospi Index rose by 1.5% this morning.

Corporate news from South Korea is also positive. Shares of a major electronics manufacturer, Samsung, went up by 0.6%, and securities of car manufacturer Kia Motor by 0.7%.

Australia's S & P / ASX 200 Index rose to 0.75% this morning. Here, mining leaders BHP and Rio Tinto, which increased their capitalization by 3% and 3.8%, respectively, became the leaders in the rise.

Trading on the stock markets of Western Europe today also began a new week positively. The main news they played here was a sharp escalation of the conflict between Washington and Beijing, which, apparently, will not be.

The general index of enterprises in the Stoxx Europe 600 region increased in the morning by 0.53% and reached 352.22 points.

The UK FTSE 100 index gained 0.66%, the French CAC index rose by 0.77%, Italy's FTSE MIB index rose to 0.58%, and Spain's IBEX 35 index showed the best performance rising to 1.29%.

The statistics released this morning showed an increase in the PMI in Europe over the last spring month of this year. Nevertheless, this did not help him get too far from the minimum value that was recorded this year. According to recent data, the index was 39.4 points, but earlier, according to preliminary forecasts, it was expected to rise slightly higher up to 39.5 points.

In general, the situation on the stock exchanges in Europe and Asia is quite positive, which will most likely help to maintain further growth.

Maria Shablon,
Chuyên gia phân tích của InstaForex
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