Asian Market to Experience Greater Fall, if US-China Trade Deal Blows
Last updated on May 15th, 2019
With the upcoming US-China trade deal summit, Asian Market has recorded a rise despite the losses incurred on the previous day. As the news of Chinese authorities visiting Washington came into light, the markets experienced a rise on Tuesday.
The next summit on the US-China trade deal will take place on Thursday and Friday in Washington. Earlier, Chinese officials asked the US administration to reduce the allocations. US President Donald Trump was infuriated when these demands were taken to the US Administration.
Trump posted two tweets on consecutive days, which focused on increasing tariffs to 25 percent from 10 percent, and pummelled the Asian Market on Monday.
However, after the news of Chinese Vice President Liu He along with his delegation visiting Washington for further talks on trade deal was announced, the investors took a sigh of relief and the market recorded the rise.
US trade representative Robert Lighthizer blamed China for reneging on the promises of trade talks, but he asserted and assured that a trade deal between the US and China is still possible. This assurance helped the investors in the Asian market to calm down.
Earlier when the US Delegation visited China for discussion on the US-China trade deal, China denied (interlink 1) discussing Cybertheft on US corporate companies. This raised the possibility that the trade deal might not be successful and have adverse affects on the markets of both the worlds.
With Trade deal still a possibility, the Shanghai market experienced a rise of 0.9 percent while Hong Kong and Singapore markets experienced a surge of 0.8 and 0.3 percent respectively. Markets of various other countries experienced a similar rise.
Earlier when Trump imposed the tariffs on $250 billion worth of Chinese goods, in response China imposed duties of $110 billion on the US goods. According to some of the analysts the tariffs imposed by Trump can be a negotiating method. Any further escalations in the US-China trade deal might cause adverse effects in the Asian market and weaken the global economy as well.
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