Asian markets slump, as US trade sanctions against China intensify
|Relationship between the two largest economies does not bode well. The Trump administration memorandum released on Thursday to impose 25% tariffs on Chinese imports worth USD 60 billion is worrying investors.
The first signs are already in place: Hong Kong Hang Seng sells off -2.95%, hampered by IT (-6%) while China CSI300 dropped by -2.87%. On Japan side, Nikkei 225 dropped by -4.51%, followed by Topix (-3.62%).
Stay on top of the markets with Swissquote’s News & Analysis
Chinese retaliation measures did not take long to come as Chinese trade ministry communicated its willingness to impose tariffs on US imports on pork, fruits, nuts, wine and other construction-related products. Additionally, China is planning to initiate infringement procedures to the World Trade Organization concerning recent introduced iron and aluminum tariffs. The outcome won’t probably get anywhere, everything is about baring the teeth and putting economic matter aside. It is only a matter of time until the situation will be cooling down.
In spite of current political tensions between both nations, we see the USD/CNY strengthening in the short-term, currently trading at 6.32 and expected to head along the 6.33 range.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.