Is US-China Trade War the Sole Reason Behind Asian Stocks Dropping?
Following the losses in the European market and Wall Street, Asian stocks on Wednesday witnessed a steep fall. The fall caused a flurry amongst investors, who became worried for the probable and imminent economic slowdown due to no progress on resolving the US-China Trade War.
Even though the list of the US consumer confidence was looking for a highly improbable and lately one of the best raise, it could not diminish the angst of the investors. The period of continued rise in the prices of bonds across the world sped up as investors sold the shares, and are now worried about the debt of the German and the US government.
The US stocks on Wall Street also witnessed a drop in the stocks of the Dow Jones Industrial Average, which experienced a dive of more than 200 points. The US Stocks dropped to the lowest point in the last few months.
While the ongoing US-China Trade can be considered as one of the reasons for the drop in the Asian Stocks, speculations of an upcoming feud between Italy and the European Union is also a major cause for the nose-diving of the stocks.
Also, the possibility of Japan and Europe getting involved in the US-china trade war have also caused to the worry of the investors.
The Asian stocks experienced a varied fall across the continent. In Japan, while Nikkei 225 experienced a fall of 1.21 percent at the end of the day and closed at 21,003.37, Topix experiencing a plummet of 0.94 percent, closed at 1,536.41. Similarly, Kospi in South Korea, after experiencing a fall of 1.25 percent, closed at 2,023.32. However, shares of Samsung Electronics reduced the losses as it experienced a loss of 1.76 percent.
Mainland Chinese stocks also experienced a drop, but of a lesser impact as the Shanghai composite dropped down only 0.16%, closing at 2,914.70, and the Shenzhen component experiencing a low of 0.28 percent only and closed at 9,010.36.
Prior to the Asian stocks experiencing the fall, US President Donald Trump on Monday, claimed that the US is “not ready” to come in accord on the prolonged trade war with China – however, he believed that they might find a common ground in the future.
Even though he made sure to not objectify China as currency puppeteer, he made sure to list it on a surveilling record along with Germany, Italy, Japan, South Korea, Malaysia and Singapore.
If the US-China trade war does not end soon, it might cause unfortunate effects not only on the Asian stocks market, but across the worldwide market.
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