Asian Shares Close Higher on Xi Jinping Economic Plans

On Tuesday, Asian shares were seen to trade lower during the trading session mostly pressured by the decline in Wall Street shares during the earlier session on news of the office of U.S. President Donald Trump’s lawyer being raided by the FBI which may heightens market concerns regarding the U.S. economy which has also suffered from the current tension between the United States and China.

Despite trading lower, Asian shares recovered at the end of Tuesday’s trading session following an announcement from China’s President Xi Jinping regarding plans or measures in able to open up the economy of China further.

Xi mentioned this during his speech at the Boao Forum for Asia which included pointers on tariffs being placed on automobile imports as well as other products. Xi also mentioned the enforcement of legal intellectual property on foreign firms.

The comments from Xi’s speech comes after Trump previously mentioned another tariffs worth $100 billion last week on Chinese imports in response to China’s $50 billion tariffs which also happened to be the country’s response to Trump’s $50 billion tariffs in the first place.

Trump stated in a tweet during the weekend that he expects China to remove trade barriers also saying that a great future is seen between the United States and China ahead. Despite this, Trump’s criticism regarding China’s trading system in a separate statement have dampened market hopes of a reconciliation between the two countries.

While most U.S. stocks traded mostly higher during Monday’s session, shares in the country are still at risk of losing ground should the market continue to raise its concerns regarding possible trade wars between China and the United States.

Asian Market

The MSCI’s broadest index of Asia-Pacific shares outside Japan was down by around 0.2% while the KOSPI was seen down by as much as 0.8%. Japan’s Nikkei index was also down by 0.4%. This was led mostly by the decline in Wall Street shares from Monday’s trading session which has weakened overall market sentiment.

The Nikkei 225 in Japan recorded 0.54% higher ending at 21,794.32 during the day from an intraday high of 21,933.99. The Kospi was also seen 0.27% higher to 2450.74 while the Shanghai Composite index was seen trading 1.67% higher closing at 3,190.65 while the Shenzhen was also 0.51% higher to end at 1.814.22.

In Australia, the S&P/ASX 200 index was seen gaining 0.83% higher to 5, 857 with shares from the energy, material, and financial sector leading most of the gains of more than 1% each.

See also: Trump's Steep Tariff Plan Sends U.S. Dollar Down

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