Following the US-China Tariffs, Asian Markets Witness a Mixed Day
Asian markets witnessed a mixed day on Monday, following the imposition of latest US-China tariffs over the weekend. The year-long US-China trade war, which worsened exponentially in August, is now at a stage where the two global powers can either reach a common ground or can further negatively impact the markets across the globe.
After both the global powers imposed latest tariffs on goods exported by their counterparts, the investors are now worried about the slacking global growth.
Mainland China witnessed a growth in its share market as Shanghai composite experienced a growth of 1.31 percent closing at 2,924.11. On the other hand, Shenzhen component also saw a rise of 2.18 percent to close at 9,569.47.
The Asian markets, including Hong Kong and Japan, along with the stocks of Australian markets experienced a drop. Hong Kong’s Hang Seng index plunged by 0.64 percent and the shares of Railway operator MTR experienced a drop of more than 3 percent as the city continues to go through the ordeal of protests.
Similarly, the Nikkei 225 and the Topix index in Japan fell by 0.41 percent and 0.44 percent to close at 20,620.19 and 1,505.21 respectively. The Australia’s S&P/ASX 200 dropped by 0.38 percent and closed at 6,579.40 points. However, the Kospi of South Korean stock market saw a marginal growth of less than 0.1 percent to close at 1,969.19 points.
Seeing the mixed day at the Asian markets, chief market analyst at Markets.com Neil Wilson said, “After a rough August traders should buckle up for more volatility in September. Trade and tariffs continue to gnaw away at investor confidence.”
US imposed 15 percent tariffs on Chinese goods of worth $300 billion. On Sunday, the US tariffs were imposed on Chinese goods of worth $112 billion. In retaliation of the tariffs imposed by the US authorities, the Chinese government imposed tariffs ranging from 5 to 10 percent over the US goods worth $75 billion.
As both the parties will continue the trade talks in September, even after the tariffs are imposed, the Asian markets and their investors will be eagerly looking forward to the meeting and its outcomes.
Following the mixed day at the stock markets, Chief Executive of Port Shelter Investment Management Richard Harris said, “It seems almost impossible to think that China and US are going to settle everything with one big bang. I don’t really expect an awful lot coming from them. I think the best markets can hope for is that there’s nothing worse and there’s no big bust up.”
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