Asian shares were mostly lower Wednesday
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Asian shares were mostly lower Wednesday

Asian shares on Wednesday included the virus count and China-U.S. Were as low. Tension weighed on emotion.

Hong Kong’s Hang Seng dropped 0.8% after authorities arrested dozens of pro-democracy figures. A move by the Trump administration to further sanction Chinese companies reduced tensions between the two largest economies.

Despite widespread gains on Wall Street on Tuesday, stocks also plunged in Tokyo, Shanghai and Sydney, as stocks started their 2021 losses with the worst losses in months between a worsening epidemic and a potential market-driven US Senate election. Stole legs.

Political parties and local media said the Hong Kong police on Wednesday arrested nearly 50 pro-democracy figures for violating national security law by participating in an informal primary election last year to increase their chances of controlling the legislature.

Those arrested on suspicion of sabotage include former jurists and pro-democracy activists, South China Morning Post and online platform Now News. This was the biggest move against Hong Kong’s democracy movement since Beijing’s national security law was enacted in the semi-autonomous region in June.

Hong Kong-traded shares in major Chinese telecom companies China Telecom, China Telecom, China Unicom and China Mobile were merged following reports that the three big companies were held despite the New York Stock Exchange complying with a US government order Can choose to delist. Monday that it will not comply with the request.

In US business, China Telecom gained 8.8% on Tuesday but declined 2.1% after hours of trading. China Mobile jumped 9.3%, but fell 2.2% after hours of trading and China Unicom rose nearly 12%, and then fell 2.9%.

Meanwhile, President Donald Trump signed an executive order banning transactions with eight Chinese apps, including the exacerbations of the trade war during most of his term, including Alipay and WeChat Pay. However, the order goes into effect in 45 days, when Joe Biden will be president, its effect is not clear, although it is likely to have more friction with Beijing.

Alipay is a widely used digital wallet that is part of the empire of Jack Ma, an e-commerce billionaire and founder of Ant Group. WeChat is a large technology service operated by Tencent. Others named in the order are CamScanner, QQ Wallet, SHAREit, Tencent QQ, VMate and WPS Office.

Japan’s Nikkei 225 index declined 0.4% to 27,036.51 and in South Korea Kospi fell 0.2% to 2,987.57. Hang Seng gave up 240 points to 27,409.35 points. In Australia, the S & / ASX 200 fell 1.3% to 6,595.10. The Shanghai Composite Index slipped 0.2% to close at 3,522.72.

On Tuesday, the S&P 500 rose 0.7% to 3,726.86, almost half of the index’s losses a day earlier. Large stocks of oil producers led the S&P 500 stocks to rise due to the strong crude oil prices.

Shares of smaller companies outperformed the broader market, with the Russell 2000 index’s smallcap market gaining 1.7% to 1,979.11.

The Nasdaq composition rose 1% to 12,818.96. The Dow Jones Industrial Average rose 0.6% to 30,391.60.

Investors remain optimistic that the US economy will recover this year as more Americans receive coronavirus vaccination. Optimism is being investigated due to new infections climbing horrific rates worldwide, threatening to bring in more lockdown orders.

The support from central banks and governments can maintain the belief that until a major recovery is made, the world can succeed thanks to the rollout of the COVID-19 vaccine later this year.

Traders have also focused on the outcome of Tuesday’s runoff elections in Georgia, which will determine which party controls the Senate. Some analysts say the results may mark clear winners and losers in the stock market.

The general thinking is that a Democratic sweep would open the door to higher tax rates from Washington, tougher regulation on businesses and other potential profit-crimping changes. This will put widespread pressure on the stock market, attracting more regulatory scrutiny, especially with Big Tech shares.

But democratic control of the Senate, the White House and the House of Representatives would likely lead to another dose of large financial support for the economy. Democrats have lobbied for a $ 2,000 cash payment to go to most Americans. They may also insist on spending more on infrastructure projects.

Such excitement can eventually lead to high inflation in the economy, something that has been almost nonexistent for years. Expectations of rising inflation have helped to boost fiscal yields recently, and yields on the 10-year Treasury have risen from 0.95% on Tuesday to 0.% on Tuesday and 0.90% on late Monday.

An increase in energy stocks also indicates investor optimism that an economic recovery will increase oil demand, leading to higher prices. Occasionally

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About Dwipen Gogoi

Dwipen Gogoi, MBA (IB and IT) and PGDFT from Pune. (Technical Analyst of AliceBlue) I am a You Tuber, Blogger and doing Technical Analysis last 10 years in Stock, Commodity and Forex Market. i am creating various trading strategies for day traders, swing traders, scalp traders.

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