Stock markets in Asia rose in response to an announcement by Trump’s administration to delay the Huawei ban.
The upward trend in the stock markets was also supported by the Chinese government’s decision to lower interest rates.
According to CNN, China’s Shanghai Composite Index increased by 0.2%, whereas Hong Kong’s Hang Seng Index rose by 0.1%. At the same time, Huawei’s stocks rose to 5.9% in Hong Kong.
The Huawei ban and looming US tariffs on Chinese goods threaten Asian stock markets as well as China’s GDP.
China lowered the Loan Prime Rate to 4.25% as a monetary measure to prevent the country from heading to a recession. The country’s Central bank sets a new Loan Prime Rate on the 20th of every month.
While the new rates might improve economic conditions in China, the country still needs more fiscal and financial reforms. CNBC notes that ” Chinese authorities have used both monetary and fiscal measures to lift economic activity, but analysts say specific segments of the economy could use more help.”
The trend in Asian markets spilled over to other parts of the world. Stocks of Japan’s Nikkei climbed up 0.5%. At the same time, South Korea’s Kospi rose by 1% as Japan approved the export of chips and displays to South Korea.
