Most Asian stocks embarked on a steady rise on Thursday morning, offsetting the losses incurred due to the continued breakdown of trade relations between China and Australia. This breakdown plummeted to a new low after Chinese officials a formal suspension of economic dialogue with Australia, as the Asian superpower continued to exhibit frustration with its Australasian trading partner.
The big winner in Asia on Thursday was Japan, which resumed trading after a holiday, with Hong Kong following closely behind in gains. Unfortunately, the tension between Australia and China offset some of the gains made by most Asian stocks, with the tech-heavy Nasdaq 100 closing in the red as a result.
The tension in the Asia-Pacific had limited effects on other areas of the market, however, as the U.S. dollar remained steady after a prolonged period of decline. With the U.S. economy currently embarking on a largescale recovery, many investors are focusing their attentions on the central bank, with many wondering when it will begin rolling back its emergency support.
A sample of economists who were interviewed by Bloomberg largely stated that they expect the federal government to announce a reduction in the pace of bond purchases in the fourth quarter. It was also suggested by Boston Federal Reserve President Eric Rosengren that the mortgage market no longer requires the same level of support as it did previously.
