While Singapore, Thailand and Philippines Stock Exchanges are pulled up by first phrase of US-China trade deals, British elections results are perceived as possible risk
The majority of stock markets in southeast Asia ended the business week in growth. Investors were in good mood after news on tension release between the US and China. Two greatest global economies successfully finished negotiations of first phase of trade deals. Thanks to the negotiations no more taxes will be imposed on Chinese goods. In exchange China agreed to accept American goods in the value of $50 billion, especially agricultural products.
Singapore, Philippines and Thailand Stock Exchanges responded to the situation the most. During Friday they added up between 1 – 2 %, the trend will probably remain in this week. Furthermore, short-term profit-taking is not excluded.
Unfortunately, the mood in southeast Asia was disrupted by results of British early elections. Boris Johnson’s triumph may mean end to Brexit uncertainties, yet Asian markets perceive it as possible risks for free trade. Yet, so far it seems that the positive expectations caused by the US-China deals outweigh fear caused by the UK leaving the EU.