U.S.-China Tension to Weigh on SET, Analyst Expects Negative Open before Rebounding

Asia stocks traded lower amid concerns over the rising tension between the U.S. and China after Beijing approved the new legislation for Hong Kong, while the U.S. President Donald Trump is expected to hold a press conference on Friday regarding the matter.

 

As of 9:05 local time in Thailand (GMT+7), Nikkei dipped 0.53%, SSEC fell 0.07%, HSI slipped 0.60%, ASX 200 plunged 1.43% and Kospi sank 0.59%.

Over the night, Dow Jones closed 147.63 points lower or downed 0.58% to settle at 25,400.64 points. S&P 500 slipped 0.21% and Nasdaq dipped 0.46%.

 

Yesterday, China’s National People’s Congress (NPC) approved the proposal to implement a new national security law in Hong Kong, which triggered the U.S. to comment on the Chinese government’s action.

Moreover, the House of Representatives had just passed legislation to sanction against Chinese officials over the detention and torture of Uighur Muslims. The paper had been sent to Trump’s desk.

 

Krungsri Securities (KSS) had a negative view on the SET Index in today’s session, expecting the index to slip between 1,325-1,330 points before rebounding. The negative sentiment was due to the tension between the U.S. and China, which could have hindered the Phase 1 trade deal.