This archive report was first published on 20 August 2019.
On August 20, 2019, Asian stock markets experienced a significant surge in response to the US administration's decision to delay the Huawei ban for 90 days.
The upward trend in the stock markets was also supported by the Chinese government's decision to lower interest rates, with the Loan Prime Rate being set at 4.25%.
According to CNN, China's Shanghai Composite Index increased by 0.2%, while Hong Kong's Hang Seng Index rose by 0.1%. Huawei's stocks also rose to 5.9% in Hong Kong.
Despite the positive trend, the Huawei ban and looming US tariffs on Chinese goods still pose a threat to Asian stock markets and China's GDP.
China's Central bank sets a new Loan Prime Rate on the 20th of every month, and the country still needs more fiscal and financial reforms to improve economic conditions.
As CNBC notes, 'Chinese authorities have used both monetary and fiscal measures to lift economic activity, but analysts say specific segments of the economy could use more help.'
The trend in Asian markets spilled over to other parts of the world, with Japan's Nikkei climbing up 0.5% and South Korea's Kospi rising by 1% following Japan's approval of the export of chips and displays to South Korea.
