Asian markets decline as China-US trade fears rise

Asian markets slide as trade tensions between US and China rise, us stocks slide.

Us-China trade fears Source: Bloomberg

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.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Bid
Offer
Updated
Change
Bid
Offer
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.

All trading involves risk and losses can exceed deposits. Trading CFDs may not be suitable for everyone so please ensure that you fully understand the risks involved. All trading involves risk and losses can exceed deposits.