Asia Takes Cue from Wall Street, Mostly Rises

Asia Pacific markets mostly rose on Tuesday, following gains on Wall Street overnight as investors remain unfazed by China’s retaliatory actions against the United States. But Chinese mainland markets gave up gains in the afternoon.

In Japan, markets returned from a long weekend in style, the Nikkei 225 average in Tokyo soaring 420.3 points, or 1.9%, to 22,750.29. The Japanese yen, also a safe-haven currency, changed hands at 106.17 against the U.S. dollar, weakening fractionally from levels near 105.30 in the previous week.

In Hong Kong, the Hang Seng ballooned 513.25 points, or 2.1%, to 24,890.68.

In economic news, Singapore’s Gross Domestic Product contracted by 42.9% in the second quarter of 2020 compared to the previous quarter. That sent the Southeast Asian country into a technical recession as large parts of the economy were shut down in early April to slow the spread of coronavirus.

Meanwhile, the Australian dollar rose 0.29% to $0.7170.

CHINA

The CSI 300 stepped back 43.08 points, or 0.9%, to 4,681.79.

Reports said China imposed sanctions on 11 U.S. citizens that included Senators Ted Cruz, Marco Rubio, Tom Cotton, Josh Hawley and Pat Toomey.

The move from Beijing followed after Washington last week said it will impose sanctions on 11 individuals including Hong Kong leader Carrie Lam for her role in overseeing and “implementing Beijing’s policies of suppression of freedom and democratic processes.”

The U.S. lawmakers sanctioned by Beijing have been vocal critics of a new security law that China imposed on Hong Kong, strengthening its hold over the city.

In other markets

In Singapore, the Straits Times Index doffed 1.36 points, or 0.1%, to 2.544.15.

In Korea, the Kospi gained 32.29 points, or 1.4%, to 2,418.67

In Taiwan, the Taiex index dropped 113.81 points, or 0.9%, to 12,780.19

In New Zealand, the NZX 50 fell 38.13 points, or 0.3%, to 11,645.32

In Australia, the ASX 200 gathered 28.45 points, or 0.5%, to 6,138.65.