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Stocks in Asia particularly in Australian and Japanese regions led losses on Wednesday on growing market concerns regarding US President Donald Trump’s plan for economic growth leading investors to move from risky and overvalued assets to safe-haven assets such as gold.

The Australian dollar also incurred huge losses as funds cashed out gains from the two-week high while the Australian share market suffered their biggest loss since November with a 1.5% decline on doubts that Trump’s administration can implement better healthcare deals and tax changes in the congress. The S&P/ASX200 index fell by 1.3% during early morning trade with the mining and energy sector leading most of the losses. The Nikkei 225 Stock Average also declined by 1.6% while the Hang Seng Index fell 0.8%.

By Thursday, Asian stocks edged higher as Trump continued to push a health care reform bill in the midst of growing doubt to whether his administration can sustain a pro-growth economic plan.

Asian Stocks Inch Higher, Recovers

As Trump worked his way into pushing a health care reform bill, Asian stocks inched higher on Thursday as the US dollar’s gains did not reach Asian markets with the Nikkei in Japan rising 0.2% higher on a weaker yen.

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The CSI300 from China also rose on rising confidence that the index MSCI may finally include A-shares in its indices but later lost the gains after the huge volume of trades from China’s main market to the Hong Kong link.

The Shanghai Composite lost 0.3% while the HSCE gained 0.2%. The Hang Seng Index in Hong Kong, meanwhile, fell 0.1%.

Trump, who has been trying to gain more followers and support for his plan to repeal the 2010 Affordable Care Act from the former President Barack Obama reportedly made progress in their efforts to convince Republicans of their plan. Trump’s failure to repeal the former Obamacare will drag major stocks down and will overshadow any positive outlook on the rest of his other plans and policies. Tax cuts and other pro-business ventures from his administration might also be delayed as market doubt on his capability to convince the congress of his plans will raise further questions.

As the yen ended its seven-day high, shares in Japan suffered the most with the Topix fluctuating by 2.1% on Wednesday. It recovered around 0,1% on Thursday.

The MSCI Emerging market rose 0.1% after losing 0.6% the previous session which is its first decline in the past two weeks.

Positive Wall Street

Asian markets also rose as Wall Street Stocks steadied. The Standard & Poor’s 500 index rose 0.2% to 2,348.45 spurring a recovery in Asian markets.

The Dow Jones Industrial, meanwhile, remain unchanged at 20,661.30 despite hitting above 21,000 a week ago as Nike recorded its biggest one-day loss in the past five years on a mixed earnings report that disappointed most investors. The Nasdaq composite, on the other hand, rose 0.5% to 5,821.64.

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