US Markets

Asian shares suffer a loss in July

Credit: REUTERS/China Stringer Network

Asian shares declined in July, weighed down by uncertainties over the U.S-China trade war and tempering expectations of aggressive monetary easing by major central banks this year.

Aug 2 (Reuters) - Asian shares declined in July, weighed down by uncertainties over the U.S-China trade war and tempering expectations of aggressive monetary easing by major central banks this year.

The MSCI's broadest index of Asia-Pacific shares, .MIAP00000PUS fell 1% last month, after a gain of over 5% in June. The index has fallen another 1.8% so far this month.

Trade optimism faded in July due to the lack of progress in trade talks between the United States and China. On Thursday, U.S. President Donald Trump said he would impose impose a 10% tariff on $300 billion of Chinese imports from Sept. 1, which marked an end to a truce in the trade war struck in June.

The Federal Reserve cut interest rates at the end of July but the head of the U.S. central bank said the move might not be the start of a lengthy campaign to shore up the economy against risks including global weakness.

In July, equities markets in India .NSEI plummeted 5.7%, South Korea .KS11 shed about 5%, while Hong Kong .HSI and Malaysia .KLSE both fell more than 2%.

Markets in Vietnam .VNI, New Zealand .NZ50 and Australia.AORD however, gained about 3% or more.

Monthly price change July 2019https://tmsnrt.rs/2Kharwi

Asian equities performance in 2019https://tmsnrt.rs/2KjSbCt

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy Bengaluru; Editing by Richard Borsuk)

((gaurav.dogra@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More