The so-called “stock market bloodbath” has continued on Friday with major indices falling down to the lows of the last October. What's going on?
Asia-Pacific stocks generally dive
On Friday, stock indices of the Asia-Pacific region generally dipped because market participants took a cautious stance ahead of the long-awaited G-7 summit, which burst out today in Canada. Additionally, investors paid much attention to the forthcoming meetings of the Fed, the ECB and the BOJ next week. A high-level summit of America and North Korea also drew attention of financial markets.
Chinese equities went down steeply, demonstrating their third weekly losses in the face of renewed trading issues as well as worries as for the liquidity problems of the stock market. Additionally, the base index of the Shanghai Composite headed south by 1.36%. As for the Hang Seng index in Hong Kong, it inched down by 1.76% at the end of the trading session.
Moreover, it has become known today that in May China's exports demonstrated double-digit surge notwithstanding the everlasting trade dispute with America. As follows from the data of the Main Customs Administration of China, the country's exports in May tacked on by 12.6% in contrast with the same period of 2017, beating expectations of surge by 11.1%. Simultaneously, imports steeply soared by 26%, surpassing the anticipated annual surge of 18.2%.
May’s trade surplus accounted for $24.92 billion, quite below the anticipated reading of $33.8 billion. As a matter of fact, China's trade balance with the United States jumped to $24.6 billion.
Additionally, Japanese equities went down in the run-up to the disputed G7 negotiations and the historic summit of North Korea and America.
Honda Motor reduced its capitalization by about 0.5% following news that the giant and General Motors decided to jointly develop next-gen batteries for electric cars.
In April, Japan came up with a surplus of the current account of payment transactions - Y1.845 trillion.
Australian stocks went down a bit as traders expected the outcomes of the meetings of the key financial institutions of the EU, Japan and America.
Besides coronavirus, other news has been driving the stocks of Apple, Wallmart and General Motors to the lower levels.
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