Asian stocks track Wall Street losses
- Asian stocks are flashing red following the slide in the US stocks.
- Trade tensions linger, China calls US’ policies as economic terrorism.
With trade tensions showing no signs of abating, the Asian equity markets are tracking Wall Street losses this Thursday morning.
At press time, the Shanghai Composite index is down 0.77% and Japan’s Nikkei is shedding 0.75%. Stocks in Australia, Hong Kong, and New Zealand are also flashing red.
South Korea’s Kospi, however, is reporting 0.20% gains as of writing and so are the futures on the S&P 500 index.
The US stocks fell on Wednesday with the Dow Jones Industrial Average sliding more than 200 points on lingering trade tensions. Chinese newspapers reported earlier this week that Beijing could use rare earths to strike back at Washington after the US President Donald Trump said he was "not yet ready" to make a trade deal with China.
Also, China’s diplomat was out on the wires earlier today calling US’ trade dispute as “naked economic terrorism”.
Analysts are of the opinion that upcoming G-20 meeting, scheduled for June 28-29 in Japan could offer relief to the markets, as China and the US may revive negotiations over trade.
The risk assets, however, may have a tough time till then, unless both sides express willingness to talk on the sidelines of the G-20 meeting.
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
