Asian stocks fall as Trump to impose tariffs on China next week

American President Donald Trump says he has plans to move ahead with imposed tariffs on $200 billion in Chinese imports as early as next week, according to reports.

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Asian stocks slipped on Friday upon the news, while treasuries, the dollar and the yen held on to gains. Nikkei futures slipped lower than the last close at 22,710, with their counterpart in Osaka at 22,720.

Chinese yuan and US treasury yields fell, while Australia’s SPI futures were at 6.336, compared to the ASX 200’s previous close at 6.351.

Japan’s Topix index fell 0.5 % Friday morning in Tokyo, while South Korea’s Kospi index slipped 0.3 %.

Critics however caution that Trump is yet to make comment on the matter, with the white house declining to confirm repports. The Bloomberg report sited sited six unidentified sources that confirmed the news.

Despite its verification, caution over the tariff news shook the market causing stocks to slip, reflecting in Argentina and Turkey.

If a decision is made next week the imposition of $200 billion Chinese imports would be the biggest yet, exacerbating the trade war between the US and China. This would likely shake-up financial markets, many with growing concerns about the conflict.

IG Market Analyst Kyle Rodda says China’s financial markets have been scrutinised by traders on Friday because of renewed hostilities overnight.

'Investor sentiment towards China’s markets had improved throughout the week, following Chinese policy makers assurances of supporting the economy and financial markets.  Notwithstanding this, Chinese indices continue to fail to mount a serious recovery, as traders stick to their strategy of selling the rallies.' Mr Rodda said.

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