On Asian stock markets, stock prices rose because investors were encouraged by the message from the United States (U.S.) President Donald Trump that he could adjust tariffs on car imports.
The MSCI index of Asia-Pacific stocks was up by 0.4 percent yesterday, strengthening for the second day in a row. Yesterday morning, Japan’s Nikkei index rose by 1.1 percent, while stock prices in Hong Kong, Australia, and South Korea increased between 0.2 and 1 percent.
In Shanghai, however, stocks experienced a slight decline. Among the biggest gainers this morning were car manufacturers’ stocks because Trump stated two days ago that he might adjust the 25 percent tariffs on car and auto parts imports from Canada, Mexico, and other parts of the world.
Support for the markets also came from the stock index gains on Wall Street two days ago, after Trump temporarily excluded smartphones, computers, and some other tech products from tariffs on imports from China. The Dow Jones index rose by 0.78 percent, the S&P 500 rose by 0.79, and the Nasdaq index by 0.64 percent.
However, uncertainty about tariffs keeps investors on alert. Especially since the trade war between the U.S. and China continues, which will certainly harm both economies. To what extent remains to be seen.
“The period of uncertainty continues. In such an environment, consumers, companies, and investors can hardly plan anything long-term,” says Jed Ellerbroek, portfolio manager at Argent Capital Advisors.
In currency markets, the value of the dollar slightly declined. The dollar index, which shows the value of the U.S. currency in relation to the other six most important world currencies, was around 99.65 points yesterday, while two days ago it stood at 99.70 points. Meanwhile, the exchange rate of the U.S. dollar against the Japanese currency rose from 143.00 to 143.05 yen.
The U.S. currency also strengthened against the European one, so the euro slid to 1.1355 dollars, while two days ago it stood at 1.1375 dollars. Oil prices have slightly increased. The price of a barrel on the London market rose by 0.31 percent to 65.10 dollars yesterday, while on the U.S. market, a barrel went up by 0.39 percent to 61.75 dollars, Klix.ba writes.
