Asian Market Reactions After US Shutdown Ends: The effect of the end of the 43-day shutdown in America is now visible in the global markets. A mixed trend was seen in domestic and international markets. There was a decline in the Indian market on Thursday morning, while there was growth in some places and weakness in some places in Asian markets.

condition of asian markets

• Japan’s Nikkei: Trading at 51,152 with a gain of 88 points (0.17%).
• Shanghai (Shanghai Composite): In the green with a gain of about 18 points.
• Shenzhen (Shenzhen Composite): Trading with a strength of 238 points.
• Hong Kong’s HSI: slipped by 156 points (0.58%) to 26,766.
• Kospi of South Korea: Weak with a slight decline of 2 points.

Shutdown ends in America

The US Parliament on Wednesday passed a bill ending the 43-day shutdown. Due to this, all those departments of the government which were stalled for several weeks were reopened. President Donald Trump signed the bill and gave it formal approval.

However, there is still an atmosphere of caution among investors as they are now waiting for the employment and inflation data for the month of October. The market is now eyeing the next interest rate policy of the US Federal Reserve. Investors are expecting that if economic activities appear sluggish, the Fed may cut interest rates in the near future.

Uncertainty due to lack of data

The White House has said that employment and inflation data for October will not be released because data collection was halted during the shutdown.
Because of this, at present investors will not be able to get clear signals on the real condition of the American economy.

Amidst the shutdown and data uncertainty, the US technology sector is also being impacted. Market analysts say that investors have now become more cautious about high-value tech stocks.

impact on indian market

The Indian stock market made a weak start on Thursday. Sensex opened with a decline in early trade. Nifty was also trading in the red. Experts say that global uncertainty, dollar strength, and FII selling are keeping pressure on Indian markets.

The end of the shutdown in America may be a matter of relief, but lack of data, uncertainty about the Fed’s decision and weak sentiment in the tech sector have forced the Asian and Indian markets to adopt a balanced but cautious approach for the time being.

Also read: Indian rupee collapsed against the US dollar, know how much it fell during early trading

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

Asian Stock Market: Just before the announcement of possible cut in interest rates by the US Federal Reserve, tremendous enthusiasm is being seen in the global markets. Its positive impact is clearly visible on Indian and Asian markets also.

Japan’s Nikkei index rose by 878 points to reach the level of 51,097 by 10 am Indian time. Later this lead increased to more than 1,000 points. At the same time, an increase of 0.37 percent was recorded in Shanghai Composite Index and 0.9 percent increase in Shenzhen Component Index.

Asian market boom

South Korea’s Kospi index also increased by 1.2 percent (about 48 points) to reach the level of 4,058. However, the Hong Kong market remained closed today due to holiday.

This rise in Asian markets was seen after strong closing on Wall Street on Tuesday, where a rise was seen in the shares of major tech companies. Especially the 5 percent rise in shares of AI company NVIDIA boosted the morale of investors.

Analysts say that this enthusiasm is related to investors’ expectations regarding the upcoming decision of the Federal Reserve. Apart from this, progress in trade talks between America and China has also strengthened the market sentiment.

Trump gave positive indications

According to sources, US President Donald Trump and Chinese President Xi Jinping are going to meet in South Korea this week. This has raised hopes of a trade agreement between the two countries, which may put an end to the fear of a trade war.

President Trump reached South Korea on Wednesday after visiting Malaysia and Japan. Speaking to reporters on Air Force One, he said, “It is possible to resolve many disputes during the meeting with President Xi Jinping.”

Also read: Rupee strengthened amid US Fed meeting, but why is it trading in limited range?

Asian Stock Market: Due to tariffs and increased tension between America and China, there was a tremendous impact on the Asian stock market on Wednesday. After the recent rise in the market, on one hand investors are retreating from investing money in the market, while on the other hand, a decline in the prices of gold and silver is being seen for the second consecutive day.

The decline has been seen from Hong Kong to Shanghai, Sydney, Wellington, Taipei and Manila. After the reduction in political tension in Japan, the Tokyo market has also declined due to profit booking.

Asian market decline

After Sanae Takaichi became the new Prime Minister of Japan, Nikkei fell by 269 points or 0.55 percent to the level of 49,046. While Hong Kong’s HSI also fell by 342 points or 1.32 percent to 25,684.

Along with this, Shanghai and Shenzhen also fell by 0.44 percent and 0.81 percent. On the other hand, South Korea’s Kospi increased by 3 points and reached 3,827 points at around 9.30 am.

decline in gold and silver

In the beginning of this year, a tremendous rise was seen in gold and it rose by almost 60 percent. But on Wednesday it fell to 4 thousand dollars an ounce. A day earlier, on Tuesday, gold had reached a record $ 4,381.51 per ounce. Whereas along with gold, a decline was also seen in the price of silver.

It is believed that this fall in the price of gold has happened due to many reasons, including the weakening US dollar, possible cut in US interest rates and the massive increase in gold reserves by the Central Bank.

Also read: Relief for India! Close to deal with US, know what percentage of tariff can be reduced

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)