· Asian shares slumped on Tuesday as fears about a drawn out Sino-U.S. trade war, protests in Hong Kong and a crash in Argentina’s peso currency drove investors to safe harbors like bonds, gold, and the yen.
MSCI’s broadest index of Asia-Pacific shares outside Japan skidded 1%. Chinese stocks fell 1%, while Hong Kong’s main market index tumbled 1.7% to a seven-month low.
· The main Argentine stock market fell 35% and the currency shed 25% of its value against the U.S. dollar after a surprise primary election result.
Mauricio Macri lost the first round of elections by a far greater margin than expected on Sunday, early official results showed, casting serious doubt over the incumbent’s reelection chances in October.
The primaries were viewed by many as a referendum on Macri’s painful economic reforms. The business-friendly president had promised to continue with the same austerity-driven approach if reelected later this year.
· Japanese shares shed more than 1% on Tuesday, the first trading day after a long weekend, hurt by fresh jitters about the U.S.-China trade war, turmoil in Hong Kong and a firmer yen that hit cyclical sectors and exporters.
The Nikkei share average fell 1.1% to 20,455.44, its lowest level in a week, while the broader Topix lost 1.2% to 1,486.57.
As the market reopened, investors weighed news over the weekend, which had already dented overseas share markets.
· Chinese stock markets ended the day lower today as soaring gold-related shares failed to boost market sentiments.
The Shanghai Composite Index pared 0.6 percent to close at 2,797.26. The Shenzhen Component Index fell 0.9 percent to 8,902.63. The ChiNext Price Index, which tracks growth enterprises listed in Shenzhen, dropped 1 percent to 1,524.36.
· European stocks traded lower on Tuesday as investors monitor political uncertainty in Italy, Hong Kong and Argentina.
The pan-European Stoxx 600 slipped 0.3% at the opening bell, banks leading losses with a 0.7% fall as the majority of sectors and major bourses traded in the red.
The full Italian Senate is due to meet on Tuesday to set the date for a motion of no confidence in the government, after the Lega party said last week that its governing coalition with the anti-establishment Five Star Movement had become unworkable.
Reference: CNBC, Reuters
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