ASIAN SHARES TRADE CAUTIOUSLY AMID US-CHINA TENSIONS
Asian shares started cautiously on Monday, May 25, 2020, as central bank largesse globally boosted sentiment but rising trade tensions between the world’s two biggest economies dulled risk appetite, Reuters said.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.1% with South Korea, Australia and New Zealand all starting higher. Japan’s Nikkei jumped 1.5% after the Nikkei newspaper reported the country was considering a fresh stimulus package worth over $929 billion that will consist mostly of financial aid programs for companies hit by the coronavirus pandemic.
“Nevertheless, focus is likely to be on China’s National People’s Congress, as discussions of political and economic policies continue,” ANZ analysts wrote in a note. “Geopolitics will gain attention as U.S.-China relations continue to represent a downside risk for markets,” ANZ added.
On Friday, China proposed imposing national security laws on Hong Kong as Beijing unveiled details of the legislation that critics see as a turning point for the former British colony.