Shares in Asia started skidding downwards as soon as there was speculation on Wall Street. Anxious people in business started panicking because there was a rumor stating that there may not be any successful trade deal between China and the US at least before next year. On the top spot of the leaderboard was Hong Kong that set the benchmark with Hang Seng Index at (-)1.58%, which was already at a 1.6% low. Next in line was the Shanghai Composite Index (SHCOMP) at (-)0.39 %, which was reduced by 0.4%. Finally, Japan’s Nikkei 225 came down at the third position with (-) 0.48%, which was again lowered by 0.8%.
A report was published recently stating that a primary “Phase 1” business pact may not become successful in the current year due to continuous differences of opinion. An anonymous man, from the side of the Trump Government, said to the press that a business deal might not happen ultimately. However, progress means the opposite, and there are high chances of a final agreement soon. Investors are already scared and irritated after the sudden blow from the Congressional Resolution Office in the US. The investors from Hong Kong, where political protests are a typical situation, are seeking help so that they can fight for their fundamental human rights.
Recent reports have come up with the news of Chinese condemning the steps taken by the US to support Hong Kong. The Chinese Government condemnation includes the fact that the US is using active countermeasures. Investors were previously happy about a probable deal between the two strongest economies of the world before the economic situation worsens by the end of the year. The Beijing Government wants the Government of Washington to look into the matter of broadening tariff rollbacks when it comes to Chinese goods. The speculation of no-deal shortly has taken the stock market with real rage. The technology, industrial, and communication markets have faced the most amount of losses.