Asia stocks are sliding on trade war angst, SSE Composite -0.22%
- Asian benchmarks are sliding, SSE Composite -0.22%, Nikkei 225 (-0.49%).
- US Senate passage of bill in support of Hong Kong protests spurs some concerns of impact to trade talks.
Asia stocks are sliding, following on the coattails of Wall Street as trade war angst surfaces once again. Indeed, the US Senate passage of bill in support of Hong Kong protests spurs some concerns of impact to trade talks; Nikkei 225 (-0.49%), SSE Composite -0.22%.
US Senate approves Hong Kong human rights bill, sends to House of Representatives - RTRS
On Monday, a CNBC report has investors moving to the sidelines as it was apparent that Chinese officials were concerned about Trump's prior comments about not being able to roll back tariffs.
"The latest report was that the rolling back of tariffs will be tied to the preliminary terms that were set when the trade talks failed in May," analysts at ANZ Bank explained, adding, "China has reportedly demanded that all tariffs imposed after May be removed immediately and then tariffs imposed before that be lifted gradually. US officials have a different view on how much Phase One would cover and what portion of the tariffs they should agree to roll back." In more recent trade, the angst has escalated in the US Senate approving the Hong Kong human rights bill which it is sending it to the House of Representatives.
Key notes:
Subsequently, the following statements have been streaming through, making for a risk-off session in Asia, so far:
- The Chinese Foreign Ministry was reiterating the threat to retaliate against the US bill on Hong Kong:
- Strongly condemns US senate measures on Hong Kong, resolutely opposes the action.US should stop interfering in Hong Kong and China’s affairs.US should stop the latest bills on Hong Kong from becoming law.China must take necessary measures to safeguard its sovereignty, security.
- Hong Kong government: The US bill is both unnecessary and ungrounded.HK government express regret over the US senate passage of the Hong Kong bill.HK government: Foreign parliament should not be interfering with internal affairs. HK government: Will continue to implement the one country systems.HK government: US Senate bill will have a negative impact on US interests.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
