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Hong Kong & Mainland Markets Closed, Trade Meeting Scheduled for Thursday, Trump Looks Into Biden’s China Business

Key News

Markets in both Hong Kong and Mainland China are closed today in observance of the last day of Golden Week. Both markets will open again tomorrow so check back tomorrow morning for market updates.

Asian markets were mixed following US gains on Friday with Japan’s Nikkei down by 0.51%, Korea’s Kospi up slightly by 0.05%, and Singapore’s STI up by 0.69%. Singapore is the poster child for the collateral damage of trade war. Nonetheless, the country has largely avoided taking sides in the conflict and urged the preservation of free trade.

President Trump has asked Xi to look into possible misdeeds by former Vice President Joe Biden and his son Hunter, which has sparked an impeachment inquiry into the President. While no evidence of misdeeds has surfaced, the White House is looking into Hunter Biden’s joining the board of an investment advisory firm that worked closely with Chinese firms. Trump has asked Xi for help in the investigation. However, this issue is unlikely to influence trade negotiations.

Trade negotiations are set to begin on Thursday in Washington, DC. While there is little consensus on what the precise outcome of the next round of talks will be, the Eurasia Group expects that, at a minimum, the US administration will agree to postpone tariff increases, which are technically due on October 15th.

In Hong Kong, the first arrests have been made as a result of the anti-masking law, the passing of which has drawn more demonstrations. The fact that protests continue after the shelving of the controversial extradition bill demonstrates that the root cause of distress in the city-state is socio-economic and likely related to artificially-inflated real estate prices.

Latest Prices

  • Yield on 1-Day Government Bond 1.83%
  • Yield on 10-Year Government Bond 3.14%
  • Yield on China Development Bank 10-Year Bond 3.61%
  • RMB/USD Exchange Rate 7.14