Asian markets turn higher despite ongoing US-China tensions

Asian equity markets traded higher in early trading hours on Monday, as investors were able to recover despite ongoing concerns over a potential trade war between the world’s two largest economies continued to weigh on sentiment.

In Japan, the Nikkei 225 was up 0.51 percent at 21,678.26 after trading without a clear direction for most part of the session. The Topix was able to rebound and jump 0.38 percent, with financials and retailers contributing most gains.

South Korea's Kospi benchmark added 0.60 percent to 2,444.08, with heavyweight Samsung Electronics and Posco rising more than one percent. Australia's S&P/ASX 200 was added 0.30 percent higher with almost all subindexes to the upside.

Chinese markets reopened following a two-day holiday last week. Hong Kong's Hang Seng Index was up 1.35 percent by the time of this writing, while the Shanghai composite closed 0.23 higher to 3,138.29.

On Friday, the Dow Jones industrial average dropped 572.46 points to 23,932.76. The S&P 500 was down 2.2 percent to 2,604.47 and the Nasdaq composite eased 2.3 percent to 6,915.11.

American investors were mainly worried about developments of a potential trade war with China. The dispute seems to be escalating more and more.

“China, which is a great economic power, is considered a Developing Nation within the World Trade Organization. They therefore get tremendous perks and advantages, especially over the US Does anybody think this is fair. We were badly represented. The WTO is unfair to US” President Trump tweeted on Friday.

Last week, Beijing said 128 US products were added to the list that could potentially face a 25 percent increase in tariffs in response to the $100-billion announcement from Trump.

Ahead in today’s session, no relevant data is expected. Later this week, US inflation reports will be in focus Tuesday and Wednesday.

FortFS