Nike has dropped to lows unseen since November of 2020 as it faces a boycott in China over Xinjiang's cotton issues.
Asian equities go down on US protectionism worries
On Wednesday, Asian equities slumped in the face of fears of soaring American protectionism because Donald Trump had his Secretary of State fired, who was considered to be moderate in his administration, and Trump was also about to impose hefty duties on China’s imports.
The combination of Trump’s moves left market participants looking for safety because global shares took a knock, the evergreen buck dived and bonds headed north.
MSCI's index of Asia-Pacific equities declined 0.7%, rebounding on Tuesday from a 1-1/2 month maximum, with technology sector acting as the leading drag.
Japan's Nikkei N225 went down 1%, while South Korea's Kospi index KS11 headed south 0.6%. Additionally, China's SSE Composite index along with the blue-chip CSI 300 inched down 0.3%.
The weakness emerged after overnight losses on Wall Street, when the Dow lost 0.7%, the S&P 500 shed 0.6%, while the Nasdaq Composite declined 1%.
The selling stepped up right after Trump had Tillerson dismissed following a bunch of public rifts as for policy on North Korea, Iran and Russia.
As Citi informed, since Donald Trump took office the previous year up to 35 senior statesmen from his administration have resigned, including Tillerson.
Additionally, Trump’s on the verge of imposing duties on $60 billion of China’s imports, mainly targeted at consumer electronics, information technology and telecoms.
It sent the MSCI Asia former Japan IT index down 0.6%. Besides this, large Asian technology equities including Samsung Electronics, Tencent Holdings, LG as well as Taiwan Semiconductor – all of them slumped over 1%.
Market participants guess those policymakers who back protectionism would like to employ the currency as a primary trade weapon.
The Japanese yen sank after minutes of the BOJ’s January gathering demonstrated that the vast majority of policymakers shared the opinion that Japan’s key financial institution requires pursuing powerful monetary easing.
Chinese stocks were pressed by the US plans to kick them off US stock exchanges. Alibaba has already plunged by 4% in pre-market hours.
Bitcoin skyrocketed 5% after Tesla’s founder Elon Musk officially announced it will accept the cryptocurrencies as payment.
The Reserve Bank of New Zealand will hold a meeting on Wednesday, April 14, at 05:00 MT.
Coinbase Global Inc., the leading cryptocurrency exchange in the US, will go public on the Nasdaq index on April 14!
Today traders await the US inflation data to be out at 15:30 MT. Jump in to get fresh trade ideas for today!