In overnight markets stateside, stocks saw a bounce as they recovered partially from Monday’s sharp losses. Those moves came amid a recent escalation in the U.S. Shares in Asia were higher on Wednesday following an earlier slump this week as trade tensions between the U.S. and China escalated. Mainland Chinese shares advanced on the day, with the Shanghai composite adding 1.91% to 2,938.68 and the Shenzhen component rising 1.45% to 9,169.15. The Shenzhen composite also gained 2.325% to 1,577.92.
In Hong Kong, the Hang Seng index added 0.73%. Over in Australia, the ASX 200 gained 0.71% to finish its trading day at Down Under at 6,284.20. Meanwhile, growth in China’s industrial output for April came in below forecasts, according to Reuters. The industrial production increased 5.4% year-on-year, compared to expectations of a 6.5% year-on-year increase by analysts in a Reuters poll.
The country’s retail sales growth for April also came in at its slowest pace since May 2003 . The recent flare-up in trade tensions has renewed global market concerns over how much China will allow the yuan to weaken to offset heavier pressure on its exporters. Heng said it was «a bit difficult» to see the yuan testing the 7 level against the dollar in the near term. «From a messaging point of view, if China were to let … the fall past 7, it’s just going to trigger a bit more … angry responses from Mr. Trump,» he said.
«That’s just not going to help … the ongoing difficult talks». The onshore Chinese yuan last traded at 6.8651 against the greenback, while its offshore counterpart was at 6.8994 per dollar. In overnight markets stateside, stocks saw a bounce as they recovered partially from Monday’s sharp losses, with the Dow Jones Industrial Average seeing its best day