Asian stocks posted modest gains on Tuesday morning, with investors optimistic about the global economic recovery from the COVID-19 virus, with companies re-opening for business and the global economy starting on the long but certain road to recovery.
Hong Kong’s Hang Seng Index was up by 0.58% by 10:42 PM ET (3:42AM GMT).
China’s Shanghai Composite was up 0.07% and the SZSE Component was up 0.10%, with both indexes reversing earlier gains.
Investor sentiment soured over mounting U.S.-China tensions after China informed state-owned firms on Monday to halt purchases on U.S. agricultural products such as soybeans, as well as cancel some U.S. pork orders.
China’s actions puts the first phase of the U.S.-China trade deal signed in January, and is the latest move in the tit-for-tat between the two countries, with the latest round triggered by China’s National People’s Congress voting to draft and enact national security laws for Hong Kong and Macau during the previous week.
Japan’s Nikkei 225 rose 0.99% and South Korea’s KOSPI gained 0.85%.
Down Under, the ASX 200 rose 0.01%. The Reserve Bank of Australia will announce its interest rate decision later in the day.
Meanwhile, investors were also spooked after U.S. President Donald Trump threatened on Monday to use force to quell the ongoing protests in dozens of U.S. cities over the death of George Floyd.