· Asian shares pare gains as U.S.-China tensions intensify
Asian shares pared gains on Wednesday, led by losses in Chinese stocks, after Beijing vowed retaliatory sanctions against the United States, while the euro rose to a four-month high on the prospect of stimulus ahead of a crucial EU summit.
U.S. President Donald Trump on Tuesday ordered an end to Hong Kong’s special status under U.S. law to punish China for what he called “oppressive actions” against the former British colony, prompting a warning from China.
MSCI’s broadest index of Asia-Pacific shares outside Japan was last up 0.14%, after rising over 1% earlier in the session.
In a statement on Wednesday, China’s foreign ministry said Beijing will impose retaliatory sanctions against U.S. individuals and entities in response to the law targeting banks doing business with Chinese officials, though the statement released through state media did not reference Trump’s executive order.
“Hong Kong affairs are purely China’s internal affairs and no foreign country has the right to interfere,” the ministry said.
· Japan shares hit 5-week high on vaccine, economic growth hopes
Japanese stocks rose on Wednesday to a five-week high as encouraging results from a coronavirus vaccine study and optimism about swift economic growth supported expectations that corporate earnings would pick up in the second half of the year.
The benchmark Nikkei 225 index rose 1.59 percent, or 358.49 points, to close at 22,945.50, while the broader Topix index ended up 1.56 percent, or 24.36 points, at 1,589.51.
Rallies in Tokyo tracked gains in US shares prompted by expectations for more stimulus spending from Washington and progress in the development of a virus vaccine.
US biotech firm Moderna announced it would begin the final stage of human trials for its COVID-19 vaccine candidate.
· Chinese stocks closed lower on Wednesday, with the benchmark Shanghai Composite Index down 1.56 percent, at 3,361.3 points.
The Shenzhen Component Index closed 1.87 percent lower at 13,734.13 points.
· European shares climb on vaccine hopes, mixed earnings
European shares rebounded on Wednesday from losses in the previous session, bolstered by positive updates on a potential COVID-19 vaccine, while investors weighed a mixed bag of quarterly reports at the start of earnings season.
The pan-European STOXX 600 rose 0.8% by 0720 GMT, with travel & leisure .SXTP and miners .SXPP leading gains.
Market sentiment got a boost after U.S. biotech firm Moderna Inc’s (MRNA.O) experimental vaccine for COVID-19 showed it was safe and provoked immune responses in an ongoing early-stage study.
Reference: CNBC, Reuters
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