Asian Stocks Slump, US-China Trade War Heats Up Again
Asia-Pacific stock markets fell in unison on Monday morning after trade tensions between the United States and China escalated. Both countries traded accusations and tightened trade policies, fueling investor concerns about the impact on the global economy.
China declared it was "not afraid of a trade war" after US President Donald Trump threatened new tariffs of up to 100% on Chinese imports. This move came after Beijing imposed restrictions on the export of rare earth minerals, which are crucial for the technology industry. China's Ministry of Commerce accused the US of "double standards" in its trade policies.
According to Goldman Sachs analysis, recent statements and policies from both countries indicate Beijing may be pressuring the US for greater concessions, but the risk of an escalation in the trade conflict has also increased sharply.
Market concerns were reflected in regional markets: Australia's ASX 200 index fell 0.68%, South Korea's Kospi plunged 2.35%, and the Kosdaq fell 2.24%. Hong Kong's Hang Seng futures also pointed to a lower opening at 24,968, well below the previous close of 26,290.32. Meanwhile, the Japanese market is closed for a national holiday today.
On Wall Street, negative sentiment has been evident since last Friday. The Dow Jones Industrial Average fell 878 points, or 1.9%, the S&P 500 plunged 2.71%, and the Nasdaq Composite dropped 3.56%—its biggest drop since April. Although Trump tried to allay concerns in a post on Truth Social, saying "everything will be fine," the market remains wary of the direction of US policy going forward.
Key Points:
US-China tensions are back, with accusations and threats of new tariffs.
China is ready for a trade war, accusing the US of "double standards."
Goldman Sachs: China can pressure the US, but the risk of escalation is high.
Asian and US markets plummeted, global sentiment worsened.
Investors are wary of further moves from Trump and Beijing.
Source: Newsmaker.id
