Limited gains for Asia shares and caution controls investor movements
Asian stocks recorded limited gains with investors adopting an “anticipation and monitoring” approach to customs duties negotiations before taking long -term bets.
The Japanese “Nikai 225” index increased by 0.8%, while the shares fell on the mainland of China by 0.4%.
Most other markets in the region were closed due to the “Great Friday” holiday.
On the other side of the ocean, American stocks recorded weekly losses amid disappointment with the statements of Federal Reserve President Jerome Powell, who excluded the bank’s intervention to support markets. US Treasury bonds fell on Thursday to reduce their weekly gains, and the dollar fell for the third week in a row.
Dealers focus more on the developments of bilateral conversations, in an effort to anticipate customs duties. After describing his talks with Japan as “great progress”, US President Donald Trump expressed his “great confidence” in reaching an agreement with the European Union, without providing any additional details. The talks with China are still mysterious, after Beijing confirmed on Wednesday that it has several conditions before resuming negotiations with the American administration.
Positive talks
“Trump has not shown a negative attitude towards commercial negotiations with the European Union, and the Japanese-American talks that were concluded yesterday was a positive start, especially since the issue of exchange rates was not included on the agenda,” said Mashera Echicaoa, the chief market strategy of the Sumitomo Mitsoy Asset Management.
The yen moved slightly on Friday, after he fell in the previous session following the statements of the chief Japanese negotiator that the issue of currencies was not raised during the bilateral meeting, which preceded the fears that Washington may demand to weaken the Japanese currency within its conditions.
Although Trump did not reveal the details of the potential agreement with the European Union, he spoke firmly on an upcoming agreement with Ukraine on critical minerals, stressing that he will be signed next week.
The President also expressed his hesitation in escalating customs duties against China, warning that this could hinder trade between the two countries, but at the same time he indicated that Beijing continues to seek to conclude a commercial deal.
Feasts on Chinese ships
However, the American administration has taken new steps to impose fees on Chinese ships that are anchoring in the American ports, in a move that threatens to confuse global shipping routes and escalate the trade war between the two largest economies in the world.
The shares of Asian shipping companies recorded an increase in the impact of these news. In Japan, the shares of the three largest shipping companies led by Kawasaki Kissen Kaysha jumped, and the shares of HMM and STX -Pan Ocean increased in South Korea.
At the local level in Japan, inflation rates in the consumer sector continued to rise during the past month, which strengthens the position of the central bank calling for a gradual approach to raising interest rates. Consumer prices – with the exception of fresh foods – increased by 3.2% in March compared to last year, accelerating 3% in February.
Powell’s comments
On the other hand, US Federal Reserve Chairman Jerome Powell disappointed the markets of the markets on Wednesday, after he confirmed that he would be in charge of assessing the impact of the trade war on inflation, excluding any immediate intervention.
Trump replied with a sharp criticism of the Federal President on social media platforms on Thursday, saying that “his dismissal could not come soon enough,” adding that the central bank should have reduced interest rates this year. He later told reporters that he could force Powell to resign if he wanted.
