Asian Market Update – Tuesday: Bitcoin Consolidates Above $6,000 on Speculation That China is Getting Back in the Game
The Big Question: What will a Chinese re-entry mean for the price of bitcoin?
There is now speculation that China may ease restrictions on cryptocurrency trading as President Xi Jinping is entering his second term as leader of China and the Communist Party. China has a history of having a more laid-back approach to regulations and censorship, and be less sensitive, during a president’s second term.
As CryptoCoinsNews reported on Monday, there are indications that companies, including OkEx and Huobi-Pro will soon start operating peer-to-peer cryptocurrency markets in Hong Kong, allowing for transactions in Chinese yuan among other currencies.
As the Chinese yuan is a strictly controlled currency, it is unlikely that these markets will be allowed or even able to transact in yuan without explicit government approval. This is thus seen as a sign that Chinese authorities are considering to open the door again for crypto trading, although very gradually.
The question now is how much a Chinese re-entry will mean for total market capitalization and prices of various cryptocurrencies.
Bitcoin on Tuesday morning traded up 0.33 percent in the Asian trading session, to change hands at $6,140.
Litecoin, meanwhile, was unchanged for the day, trading at $56.46.
Ethereum gained the most among the three during Asian trading on Tuesday, edging up by 1 percent to $309.75.
Main Market Movers – Mid-day Asian Trading Session
|Indexes||Value at Midday||Daily Change|
|Japan- Nikkei 225||21,967||-0.20%|
|China-Shanghai Composite Index||3,382||-0.25%|
|Hong Kong –Hang Seng||28,314||-0.08%|
Investor sentiment in Asian stock markets was somewhat sluggish on Tuesday following weakness on Wall Street the day before, news that Trump’s campaign manager Paul Manafort had been charged with financial crimes, and worse-than-expected manufacturing numbers out of China.
In Japan, the Nikkei 225 lost a slight 0.2 percent to 21,967 after midday in Tokyo trading.
In China, the Shanghai Composite Index also lost 0.25 percent to 3,382, along with shares in Hong Kong’s Hang Seng Index that lost a slight 0.08 percent to 28,314 as of midday in Hong Kong trading.
South Korea’s Kospi Index was the only gainer among the major indexes on Tuesday, trading up by 0.67 percent to 2,518 at midday.
Down under, the ASX 200 Index lost a slight 0.12 percent on Tuesday, trading at 5.912 after midday in Australian trading.
The Japanese yen on Tuesday lost a slight 0.02 percent against the US dollar, trading at 113.18 per dollar.
The Chinese yuan gained a more solid 0.27 percent on the US dollar, to 6.6249 per dollar.
The Australian dollar lost 0.17 percent on the US dollar during Australian trading on Tuesday, changing hands at 1.3025 per US dollar.
WTI Oil was down 0.11 percent to $54.
Brent Crude was down 0.18 percent to $60.
Gold gained 0.01 percent to $1,276 an ounce.
Business News across Asia
In Singapore, a member of the cabinet said in a rare statement that he is prepared to take over the job as the island nation’s leader, should he be asked to do so. Mr. Chan Chun Sing, a former general in the Singapore Army, made the comment to a question asked under a meeting with foreign journalists. He added that “In Singapore, leadership is a responsibility to be borne, not a position to be sought.”
Take-away: These types of comments are extremely rare in Singapore, which has been run by the same party founded by father of current prime minister since its independence. It may be a sign that politics are changing in the wealthy city-state and that current prime minister Lee is looking at retiring soon.
Featured image from Pixabay.