Asian markets mostly down on China tariff fears

Kalerkantho Online   

7 September, 2018 18:37 PM

Asian markets mostly down on China tariff fears


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Most Asian equities sank on Friday as investors fret that the US will ramp up its trade war with China by imposing fresh tariffs, while chip-makers were among the biggest losers following a sharp sell-off in New York.

While emerging market contagion fears continue to stalk trading floors, Donald Trump’s protectionist drive returned to the fore following an
indication Japan was next in the firing line, while NAFTA talks with Canada amble along, reports BSS.

Eyes are now on the deadline for a public consultation being carried out on Trump’s plan to hit $200 billion of Chinese goods with levies, adding to the $50 billion already targeted and marking a major step up in a battle between the world’s top two economies.

Beijing has warned it will immediately retaliate against any measures, fuelling fears of an all-out trade war that is already showing signs of
causing a drag on the global economy. The president also appeared to be preparing to set his sights on Japan,

with an opinion piece in the Wall Street Journal saying his good relationship with Tokyo “will end as soon as I tell them how much they have to pay”.

While Trump has mostly taken out his anger with China and Europe, he has often in the past complained of an uneven trade relationship with Japan. Japan’s Nikkei led losses, ending the morning one percent lower with

exporters hurt by a stronger yen as dealers ran to the safe-haven unit for shelter from market turmoil.

Sydney lost 0.7 percent and Singapore dropped 0.4 percent. Seoul and Taipei gave up 0.2 percent and Manila was 0.5 percent off.

However, Hong Kong, which has been battered this week, edged 0.4 percent higher and Shanghai gained 1.1 percent, while Jakarta added 0.3 percent.

– Key figures around 0230 GMT –

Tokyo – Nikkei 225: DOWN 1.0 percent at 22,264.11 (break)

Hong Kong – Hang Seng: UP 0.4 percent at 27,087.67

Shanghai – Composite: UP 1.1 percent at 2,722.23

Euro/dollar: DOWN at $1.1619 from $1.1624 at 2100 GMT

Pound/dollar: DOWN at $1.2924 from $1.2929

Dollar/yen: DOWN at 110.55 yen from 110.71 yen

Oil – West Texas Intermediate: UP four cents $67.81 per barrel

Oil – Brent Crude: DOWN two cents at $76.48 per barrel

New York – Dow: UP 0.1 percent at 25,995.87 (close)

London – FTSE 100: DOWN 0.9 percent at 7,318.96 (close)