Asian Stocks Rise, Markets Remain Wary of US-China Tensions
Asian stock markets opened higher on Thursday morning (October 16th), following a positive close on Wall Street despite volatile trading. Stocks in Japan, Australia, and South Korea rose, while index futures pointed to a weaker opening in Hong Kong. In the US, the S&P 500 index rose 1.2%, then fell, and finally closed up 0.4%.
Renewed tensions between the United States and China have again affected market sentiment. US President Donald Trump stated that his country is now "locked in a trade war" with China. However, US Treasury Secretary Scott Bessent suggested a longer pause on import tariffs as an effort to resolve the conflict, particularly regarding the export of critical minerals.
Investors appeared to remain optimistic and took advantage of the previous decline in stock prices to buy at bargain prices. This kept the market stable, despite technical signals that pressure was beginning to emerge. Meanwhile, global oil prices rose after Trump said that Indian Prime Minister Narendra Modi had promised to halt oil purchases from Russia. Gold prices also broke through $4,200 per ounce for the first time.
US Treasury yields also rose, with the two-year Treasury closing at 3.50%. Meanwhile, the US corporate earnings season started positively, with Morgan Stanley and Bank of America posting better-than-expected results. Technology stocks were also boosted by positive comments on artificial intelligence from European semiconductor company ASML. In Japan, the political situation is heating up ahead of next week's election for a new prime minister. (ads)
Source: Bloomberg
