The most important Asian stock exchanges showed a positive trend on Tuesday, while China continued to decline as an exception. This market development is of interest to investors as it indicates a recovery trend that could also impact the European market.
Background of Market Development
Recovery After Stock Market Crash: After a stock market crash, Tuesday is often a day when markets recover. This phenomenon is referred to as “Turnaround Tuesday.” On this day, professional investors often take advantage of the lower prices to re-enter, leading to a price correction.
Impact of US Markets: The Asian markets react strongly to developments on Wall Street. Positive signals from the USA, such as gains in the stock market and favorable news in the trade dispute, have led to a recovery of the Asian markets.
Trade Policy and Trade War: The trade war between the USA and China continues to weigh on the markets. The US government is applying maximum pressure, while China responds with retaliatory tariffs and export restrictions. These tensions negatively affect the Chinese markets.
Current Market Development
- Japan: The Nikkei index rose by 0.84 percent to 34,267.54 points. Automotive values benefitted from US tariff announcements, which provided a temporary exemption for car manufacturers.
- Australia: The S&P/ASX 200 gained 0.17 percent to 7,761.70 points.
- Taiwan, India, and South Korea: These markets also showed a positive development.
- China: The Hang Seng index in Hong Kong lost 0.24 percent, while the CSI-300 index fell by 0.29 percent. The Chinese markets were the exception to the general recovery trend.
Impact on the European Market
The positive development in Asia could also affect the European market. If the Asian markets continue on a recovery course, this could lead to a stabilization of the global markets. However, this heavily depends on the further development of the trade war between the USA and China, as it influences global economic development.
Conclusion
The Asian markets show a recovery trend driven by positive signals from the USA and the general market recovery after a stock market crash. However, China remains an exception due to ongoing tensions in the trade war. These developments are relevant for investors as they may indicate a possible stabilization of the global markets.