Ways2Capital Reviews : Asian Stocks Dip After Trump Threatens Further Tariffs On Chinese Goods

Asian stocks traded lower alongside US equity futures and the yen spiked after President Donald Trump threatened to slap tariffs on more Chinese goods. Gold and Treasuries climbed.

Japanese and South Korean shares retreated and S&P 500 Index futures declined after Trump said he has directed the US Trade Representative to identify $200 billion worth of China goods for additional tariffs.

Steeper slides were seen in Hong Kong, China and Taiwan as traders returned from holidays in those markets on Monday.

Meanwhile, shares in Australia outperformed. The Australian dollar tumbled, before paring losses, as commodity currencies weakened amid renewed concern over trade protectionism.

Investor concerns surrounding the implications of confrontation between China and the US returned just as the Federal Reserve this month signaled a faster pace of policy tightening and the European Central Bank said it will maintain its key rate until the second half of next year.

Trump says he is taking action because China has raised tariffs on US exports and “has no intention of changing its unfair practices related to the acquisition of American intellectual property and technology.”

Elsewhere, the pound steadied as UK Prime Minister Theresa May faces a Commons vote Wednesday that could determine the outcome of Brexit talks. Oil slipped as OPEC is discussing a relatively modest production increase before its meeting in Vienna this week.

Source: Bloomberg
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About Bhoomi Desai