China slides into Taiwan tension, Samsung expands S. Korea By Investing.com
Investing.com– Asian stocks were a mixed bag on Friday as Chinese stocks edged higher on escalating tensions with Taiwan, while South Korean markets outperformed on Samsung’s gains.
Broader markets were moderate in anticipation of key US data later in the day.
The US market holiday on Thursday made for limited trading opportunities, while some chilling sentiments about interest rate cuts also factored into the market’s caution. US stock index futures were flat in Asian trade.
Chinese stocks sink as Taiwan tensions escalate
Chinese stocks were the worst performers on the day, while the indexes and indexes lost about 1% each. Both indicators extended the decline seen around June and early July.
On Friday, there were concerns about increased tensions with Taiwan, after reports that China had seized a Taiwanese fishing vessel operating near the Chinese coast. Reports on Friday also said that Chinese military aircraft were in the port of Taiwan.
Other reports also indicated that Taiwanese companies were pulling workers out of China, after Beijing warned of serious measures, including the death penalty, against supporters of an independent Taiwan.
Markets fear that any escalation of tensions, especially aggression from Beijing, could draw the ire of the US and trigger more economic restrictions against China.
Losses in the country’s stocks dragged down Hong Kong’s index by 0.8%.
South Korean stocks outperformed as Samsung flagships bounced in Q2
South Korea was the best performer in Asia on Friday, rising nearly 1%.
The index was raised by an increase of 1.5%. Samsung Electronics Co., Ltd (KS:), the country’s largest stock, after the electronics conglomerate flagged 15 times its second-quarter earnings.
Samsung benefited greatly from increased demand for memory chips in the artificial intelligence industry, which boosted sales and improved margins. Its consumer electronics business also appeared to benefit somewhat from the integration of AI.
Gains in Samsung spilled over into other chip-making stocks. Memory chips are a competitor Company SK Hynix Inc (KS:) rose 1.7%.
Japanese stocks test record high amid weak yen, BOJ bets
Japan and the indices held firm near record highs on Friday, with the latter briefly hitting record levels.
Recent strength in Japanese markets was fueled by weaker export-oriented stocks, while the prospect of moderate monetary tightening by the Bank of Japan also boosted sentiment.
Household spending data read softer than expected for May on Friday, fueling the view that Japan’s economy remains fragile and will need more monetary support. This also fueled bets that the BOJ has limited headroom to tighten policy further, maintaining the loose monetary conditions that Japanese markets have enjoyed for nearly a decade.
Japanese technology stocks also tracked gains in Samsung. Investment giant SoftBank Group Corp. (TYO:) rose 0.4% and remained at a higher level as a report said the company was looking for more chips from NVIDIA Corporation (NASDAQ:).
Broader Asian markets moved in a lower to lower range. Concerns over China saw Australia fall 0.2%.
The Futures for India’s index pointed to a slightly negative open, with Indian stocks vulnerable to some gains after a string of record highs in the previous week.
