Asian markets decline as China-US trade fears rise
Asian markets slide as trade tensions between US and China rise, us stocks slide.
Wall street slides
US stocks have slid, triggering global growth fears and driving investors away from riskier assets, according to analysts.
The Dow Jones Industrial Average posted its second-biggest daily percentage drop of the year, while the S&P 500 and Nasdaq registered their third-biggest percentage drops.
It comes after US trade representative Robert Lighthizer and treasury secretary Steven Mnuchin said late on Monday that China had not adhered to commitments made during trade negotiations.
US president Donald Trump tweeted on Sunday that he would raise tariffs on $200 billion worth of Chinese goods to 25%.
Trump said that the current tariffs of 10% on $200 billion of Chinese goods would be raised to 25% on Friday, also threatening to impose an extra 25% levy on another $325 billion of Chinese goods “shortly.”
Asia stocks decline
Japan’s Nikkei 225 dropped 1.51% in early trade on Wednesday, with shares, Fast Retailing, SoftBank Group and Fanuc all seeing declines.
The Kospi declined 0.86%, as Samsung Electronics and SK Hynix shares dropping by at least 1% each.
Australia’s ASX 200 also fell 0.84%, with most sectors declining.
Oil prices rose with the international benchmark Brent crude futures up 0.16% to $69.99 per barrel. U.S. crude futures were up 0.36% to $61.62 per barrel.
Despites global growth fears, analysts still expect the two countries to eventually reach a deal, however, there are concerns that detail the Trump administration will unleash higher tariffs at the end of the week.
US and China trade negotiators are set to meet this week in Washington, but analysts predict the recent trade tensions may make it less likely a deal will be reached before the new round of tariffs.
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