Smooth opening of Asian markets on Christmas Eve
Investing.com
Published Dec 23, 2019 09:15PM ET
Investing.com - Asian markets fell slightly on Tuesday morning after another session marked by record highs on Wall Street Monday.
Hong Kong and Australian markets are set to close early on Tuesday and will be closed on Wednesday for the Christmas holiday.
China’s Shanghai Composite lost 0.05% by 09:04 PM ET (02:04 GMT), the Shenzhen Component was up 0.42% shortly after opening.
Hong Kong’s Hang Seng Index fell 0.27%.
Japan’s Nikkei 225 traded 0.12% lower after a mild upswing Monday.
Down under, Australia’s ASX 200 rose 0.02%.
Cuts in tariffs on more than 850 products announced yesterday by Beijing continue to be in focus, as well as a move by the National Integrated Circuitry Investment Fund, known as the “Big Fund”, to divest itself from some technology stocks that have been big gainers this year. The stock sale is putting a drag on some Chinese tech stocks.
On the other hand, Morgan Stanley (NYSE:MS) said in a report that the IT and consumer sectors, severely hit by the trade war between the U.S. and China could benefit from Beijing´s cut on tariffs.
“These two sectors saw the biggest scale of valuation re-rating based on their previous reaction to de-escalation events,” it said.
According to the bank, IT and transportation stocks are likely to benefit most from any de-escalation of trade tensions.
“IT and Internet due to their exposure to tariff impacts and technology bans, while transportation stocks, especially airlines, should benefit from an improved global trade outlook and strengthened CNY/USD,” Morgan Stanley explained.
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