Asian equities descend as US-China trade conflict escalates

Asian equities descend as US-China trade conflict escalates

On Monday, Asian equities went down right after American leader Donald Trump drove trade clashes by going further with duties on Chinese imports, thus helping the Chinese government to instantly respond to this move.

Worries of a global trade conflict ramped up pressure on crude, which extended Friday's big tumble, while the evergreen buck rebounded from a 3-week maximum versus the safe haven yen.

MSCI's index of Asia-Pacific stocks lost 0.4%, demonstrating its lowest reading since May 31.

In Hong Kong and China, financial markets were unavailable due to Dragon Boat festival holiday. Besides this, South Korea's Kospi index went down 0.5%, while Australian equities lost 0.1%.

Japan's Nikkei slumped 0.9% because concerns over soaring protectionism outshone greater-than-anticipated export results.

In the USA, E-mini S&P futures headed south 0.5%.

On Friday, Trump rolled out duties on $50 billion of China’s imports, coming up with a list of over 800 crucial imports from this Asian country, which would be subject to a 25% duty starting on July 6, without vehicles.

China told that it would roll out duties of the same strength scale. According to some sources, China is about to impose 25% duties on 659 American products.

By the way, China's retaliation list was extended, but the overall value was kept at about $50 billion. It’s because a number of high-value items, including commercial aircraft were excluded.

A great number of market watchers are assured that there’s still room for compromise. It seems to them Trump's announcement turned out to be a mere negotiating tactic to get faster rebates from China.

Experts tell the direct impact of the duties might be quite limited, in particular for the American economy that is currently in a good condition.

Equities of Japanese construction equipment manufacturers Komatsu Ltd as well as Hitachi Construction Machinery dived respectively 3.7% and 3.4%.

Similar

Apple event surprised traders
Apple event surprised traders

Every year in early autumn Apple holds its event where it presents new iPhones, Apple Watches, and iPads. This year wasn’t an exclusion. But yesterday’s presentation didn’t result in Apple stock growth, and here’s why.

Latest news

FED and BOE Make Another Attempt to Beat Inflation
FED and BOE Make Another Attempt to Beat Inflation

The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera