Asia in red corresponds to the USA. Europe prepares for red week
After ending the worst semester since 2008, Europe should start trading in negative territory this Friday, with a loss trend spreading into the early second half of the year.
In Asia, the main indices of the continent traded in the red and registered losses for the third day in a row.
Asian markets were affected by May consumption data in the US, which recorded a decline for the first time this year. Investors are still waiting for Chinese President Xi Jinping to visit Hong Kong a year after he introduced a national security law in the region.
In China, the Shanghai Composite fell 0.2% and the Hang Seng was closed for the holiday. In Japan, Topix lost 1.3% and Nikkei lost 1.6%. Finally, in South Korea, Kospi recorded a 1% decline.
Futures for the Stoxx 600, the benchmark for Western Europe, fell 0.8%.
In major market moves, companies associated with tourism and airlines in China fell after announcing emergency fuel spending. Already, chip makers in the region, namely TSMC and Samsung, have stepped up losses at a time when Micron Technology, the largest memory chip maker in the United States, ended depreciation talks on Wall Street after lowering consumer financial outlook. reduce the cost of computers and mobile phones.
“Usually lower US consumption data leads to a drop in global demand. They affect markets dominated by exports, in particular South Korea,” explains Cui Xuehua, analyst at Meritz Securities, Bloomberg.
“Investors are also looking for clues as to whether there will be policies that will benefit Hong Kong, such as opening borders and expanding trade,” an analyst said of the Chinese president’s visit this Friday.
