Asian shares cautious on pressing China-U.S. tensions
Asian stocks recorded a cautious session on Monday as tensions between China and the United States dragged investors’ sentiment. However, signs of recovery in China’s industrial sector minimized losses.
MSCI’s broadest index of Asia-Pacific shares outside Japan had a turbulent session. Despite this, the index held in small ranges to retain below a 6-1/2 month high monitored last week.
Chinese shares started weakly as the blue chip performed a shade lower. Hong Kong’s Hang Seng index recorded a 0.2% drop. Meanwhile, Australian shares advanced 1.2%, while South Korea’s KOSPI recorded a 0.9% increase. New Zealand’s benchmark index made minimal changes.
Though investors’ sentiment was subdued as tensions grow between the U.S and China, data showing an easing deflation in China’s manufacturing sector increased hopes of recovery in the world’s second-biggest economy.