28.05.202017:05 Forex Analysis & Reviews: Stocks report on Asia, Europe, and the USA

Today's trading on stock exchanges in the Asia-Pacific region takes place with multidirectional dynamics. Tensions are rising with the worsening conflict between the US and China, which is in fact, the only factor that exerts really strong pressure on the market.

China's Shanghai Composite Index started a new session with a 0.27% decline, while Hong Kong's Hang Seng Index fell by 1.34%.

However, particularly serious upheavals occurred in the pharmaceutical companies sector. So, CSPC Pharmaceutical Group Ltd. and Sino Biopharmaceutical Ltd. lost 10.6% and 5.6% this morning.

Tencent Holdings reduced the value of its securities by 2.3%. Technologies Holdings Inc. also lost 7.2%. Smaller losses were noted at China Mobile with a -0.7%, and HSBC Bank with -1.2%.

Another expected decline was recorded in the oil and gas industry. Securities CNOOC and PetroChina decreased by 2% and 1.1%, respectively.

Among the positive, it is worth noting the 1.99% increase in Japan's Nikkei 225 Index. The leaders among the Japanese companies were Dentsu Group Inc., an advertising corporation that recorded growth of as much as 14%, as well as automakers Mazda Motor and Nissan Motor, whose rise was at 8% and 6.2%, respectively. In general, corporate news from Japan is very good as there is much more growth than a fall.

South Korea's Kospi index has risen slightly today by 0.06%. The main news that investors paid attention to was the decision of the country's Central Bank regarding a further reduction in the base interest rate by another 25 points, which sends it to a minimum value of 0.5%. Recall that this year is the second correction in a row. Nevertheless, this is a necessary measure, since the general forecast for the Korean economy for the current year is subject to revision with quite significant reductions. So, it is already becoming clear that the country's GDP will fall by at least 0.2%. It is worth recalling that at the beginning of the year, forecasts were optimistic and growth of more than 1% was expected.

Securities Value Samsung Electronics Co. became higher by 0.4%. But LG Electronics shares, by contrast, lose 2.5%. Hyundai Motor and Kia Motor fell by 0.7% and 0.5%, respectively.

Australia's S & P / ASX 200 Index rose by 1.51%. Here, the value of securities of the world's largest mining companies BHP and Rio Tinto increased by more than 2%. In addition, shares of National Australia Bank rose to 4.5%, Commonwealth Bank of Australia to 2%, and Westpac Banking rose to 4.6%.

The new series of conflicts between the US and China today has exerted the most significant pressure on the Asian stock market. According to the official authorities of America, Hong Kong can no longer be autonomous, as the Chinese government rigidly imposes its laws. In this regard, it can no longer count on from the United States. It becomes clear that the words of President Donald Trump that new sanctions measures will be taken against China in the near future are beginning to be implemented.

Meanwhile, the European stock market is positive today. Thursday session opened with a plus and became the fourth in a row with positive dynamics. The daily news about the restoration of the work of an increasing number of companies in the EU helped build on the positive. All this only once again pushes the leadership towards the early implementation of a large-scale plan to stimulate the economy, which should provide even more significant support. The conflict between Washington and Beijing, thus, is almost leveled here.

The overall European STOXX 600 index rose 1% in the morning. The leading positions were taken by the travel, leisure and tourism sectors, as well as telecommunication companies and car manufacturers.

In general, the STOXX 600 index was able to achieve an increase of 30% compared to the same period last year, and, according to analysts, this is not the limit.

Recall that recently, the European Commission proposed to allocate 1.85 trillion euros in order to maintain and restore the economy of the region.

Securities of Airbus and Safran from France rose in value by 2% and 3.2%. The reason was the news that Boeing Co. ready to start production of passenger aircraft in the United States of America again.

The shares of another aviation company, SAS, on the contrary, fell in price by 8.2%. The fall is due to negative statistics reflecting the organization's grand losses recorded in the second quarter of this year.

In the US, an increase was observed mainly on the basis of the trading session on Wednesday. So, the S&P 500 index closed in positive territory above the level of 3,000 points, which was the first such growth in the last five months. The main support for the index was provided by the banking sector, where there was an average rise of more than 10%.

Stock markets continue to be optimistic about economic growth. The restrictions associated with the coronavirus pandemic are gradually being removed, which means that the increase will continue. Most experts are sure that this rise is far from the last, however, no one is safe from some falls either. At least there are some factors that indicate a rollback will be inevitable.