Market Talk – Tuesday, Aug.t 18

The Trump administration on Monday announced it would further tighten restrictions on Huawei Technologies Co, aimed at cracking down on its access to commercially available chips. The US Commerce Department’s actions expanded limits announced in May were aimed at preventing the Chinese telecommunications giant from obtaining semiconductors without a special license — including chips made by foreign firms that have been developed or produced with US software or technology. The new actions, effective immediately, should prevent Huawei’s attempts to circumvent US export controls, Commerce said.

The Indian economy may contract by 16.5% in the quarter ended June, compared to earlier estimates of a decline of more than 20%, on better-than-expected corporate earnings, according to economists at top lender State Bank of India. However, they believe the rural recovery is unlikely to support such pace in subsequent quarters as overall, the per capita monthly expenditure in urban areas is at least 1.8 times of rural areas, and rural wage growth in real terms might still be negative.

Reuters Tankan survey of business sentiment showed on Tuesday Japan’s manufacturers were their least pessimistic in four months in August, but signaled a slow recovery from the coronavirus pandemic. The poll, which tracks the Bank of Japan’s (BOJ) closely watched “tankan” quarterly survey, pointed to a modest recovery, with manufacturers’ morale seen somewhat less negative in the coming months. Tuesday’s survey found that the mood of manufacturers rose to minus 33 in August from minus 44 the previous month, its highest since February. The service-sector gauge was at minus 23 from minus 26.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 decreased 45.67 points or -0.20% to 23,051.08
  • Shanghai increased 12.29 points or 0.36% to 3,451.09
  • Hang Seng increased 20.04 points or 0.08% to 25,367.38
  • ASX 200 increased 47.00 points or 0.77% to 6,123.40
  • Kospi decreased 59.25 points or -2.46% to 2,348.24
  • SENSEX increased 477.54 points or 1.26% to 38,528.32
  • Nifty50 increased 138.25 points or 1.23% to 11,385.35

The major Asian currency markets had a mixed day today:

  • AUDUSD increased 0.00319 or 0.44% to 0.72397
  • NZDUSD increased 0.00608 or 0.93% to 0.66015
  • USDJPY decreased 0.6 or -0.57% to 105.43
  • USDCNY decreased 0.0269 or -0.39% to 6.90570
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