Asia stocks decline as Trump threatens higher tariffs if China doesn’t strike a deal

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FxPro Daily Economic Events
FxPro Daily Economic Events

Asia stocks traded lower Wednesday afternoon as U.S. President Donald Trump threatened to raise tariffs on Chinese goods if the two economic powerhouses do not strike a deal. Mainland Chinese stocks edged lower by the afternoon, with the Shanghai composite down 0.38% and Shenzhen component shedding 0.13%. The Shenzhen composite was around 0.1% lower. Hong Kong’s Hang Seng index slipped 0.63%.

The People’s Bank of China released its new loan prime rates earlier on Wednesday. The 1-year and 5-year loan prime rates were cut by 0.05% each from a month earlier to 4.15% and 4.8%, respectively.

Elsewhere, Japan’s Nikkei 225 slipped 0.79% while the Topix index shed 0.58%. That came after Japanese merchandise trade data for October from the country’s Ministry of Finance showed exports for the month falling 9.2% year-on-year — well off the 7.6% year-on-year decline expected by economists in a Reuters poll.

The S&P/ASX 200 in Australia declined 1.4% as the heavily-weighted financial subindex fell about 2%. Shares of Australia’s so-called Big Four banks declined: Commonwealth Bank of Australia fell 1.62%, Westpac dropped 3.18%, Australia and New Zealand Banking Group shed 1.81% and National Australia Bank slipped 2.29%.

Trump said Tuesday he would “just raise the tariffs even higher” on Chinese goods if a deal between Washington and Beijing is not reached. CNBC reported earlier in the week, citing a government source, that China is pessimistic about the trade deal. That is reportedly due to differing views on the cancellation of tariffs.

Asia stocks decline as Trump threatens higher tariffs if China doesn’t strike a deal, CNBC, Nov 20

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