Asian Markets Tumble as U.S. - China Trade War Resurfaces
Asian markets fell victim to the resurging trade war between the U.S. and China as investors were shocked to learn China’s new tariff hike against U.S. goods.
China does its own additional tariff imposition against U.S. goods worth $75 billion which will also take effect on September 1st – the same date the U.S. announced its tariff imposition to Chinese goods.
On Monday trade, the Shanghai Composite Index of China was down by 1.2%. Dow Futures of the U.S. also sank 0.7% together with S&P 500 with a 0.8% fall and Nasdaq (COMP) with a 0.9% decrease.
Hong Kong’s Hang Seng Index lost 3%. Japan’s Nikkei 225 also suffered from a 2.2% loss while South Korea’s Kospi was down by 1.7%.
The manic Monday in the trade market in Asia is but the beginning of what seems to be a catastrophic trade conflict between the two largest economies of the world. Fears of a global economic slowdown are also making its way to the market scene.
“Risks to the global economy and markets have increased,” noted the global chief investment officer of UBS Wealth Management Mark Haefele.
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