Market Talk – Wednesday, Sept. 16

ASIA:

The World Trade Organization found on Tuesday that the United States breached global trading rules by imposing multibillion-dollar tariffs in President Donald Trump’s trade war with China. WTO’s three-member panel said the US duties broke trading rules because they applied only to China and were above maximum rates agreed to by the United States. Washington had not then adequately explained why its measures were a justified exception, the panel concluded.US opposed this observation by saying its tariffs imposed two years ago on more than $200 billion in Chinese goods were justified because China was stealing intellectual property and forcing US companies to transfer technology for access to China’s markets.

Asian Development Bank expects India’s economy to contract by 9% in FY2020-21 as against 4% forecast in June as the Covid-19 pandemic weighs heavily on economic activity and consumer sentiment in the country. The revision comes on the back of S&P Ratings and Nomura changing their forecasts to a sharper contraction of 9% for India’s economy in the current financial year as against their earlier expectations. ADB, however, forecasts a strong recovery for India’s economy in FY2021-22 in its Asian Development Outlook (ADO) 2020 Update, with gross domestic product (GDP) to grow by 8% as mobility and business activities resume more widely.

Japan’s exports posted a double-digit slump for a sixth straight month in August as U.S.-bound shipments shrank due to a global demand slowdown from the coronavirus pandemic, casting a shadow over a trade-led recovery from the deep recession. Total exports fell 14.8% year-on-year in August, a smaller decline than the 16.1% expected by economists in a Reuters poll, official data showed on Wednesday. The decline in August was driven by fewer shipments of cars and mineral fuels, though the pace of contraction eased somewhat from July as economic activity showed signs of picking up.

The major Asian stock markets had a mixed day today:

  • NIKKEI 225 increased 20.64 points or 0.09% to 23,475.53
  • Shanghai decreased 11.76 points or -0.36% to 3,283.92
  • Hang Seng decreased 7.13 points or -0.03% to 24,725.63
  • ASX 200 increased 61.30 points or 1.04% to 5,956.10
  • Kospi decreased 7.66 points or -0.31% to 2,435.92
  • SENSEX increased 258.50 points or 0.66% to 39,302.85
  • Nifty50 increased 82.75 points or 0.72% to 11,604.55

The major Asian currency markets had a mixed day today:

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