BCN-05,06 Asian markets sink on fears of fresh Trump tariffs on China

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BCN-05,06

ASIA-MARKETS

Asian markets sink on fears of fresh Trump tariffs on China

HONG KONG, Sept 17, 2018 (BSS/AFP) – Asian markets sank on Monday
following reports that Donald Trump is planning to hit China with another
round of tariffs, dealing a blow to hopes for talks between the two economic
giants.

Traders sent regional equities surging on Thursday and Friday as it
emerged that Treasury Secretary Steven Mnuchin had offered to meet officials
from Beijing to avert an all-out trade war.

However, The Washington Post and Wall Street Journal said the president
had decided to impose 10 percent levies on $200 billion of Chinese imports
and could make an announcement in the coming days.

That would come on top of the $50 billion already announced over the
summer and would account for about half of China’s exports to the United
States. Beijing has threatened to retaliate to any measures.

“Whether this is little more than the president using this leverage as a
negotiating tactic, China officials will continue to be frustrated,” said
Stephen Innes, head of Asia-Pacific trading at OANDA.

“This good cop bad cop routine continues to undermine Mr Mnuchin’s efforts
as it’s still not clear if anyone other the Trump himself is commissioned to
cut a deal. And not too unexpectedly, and quite ominously, China could cancel
the meeting.”

Hong Kong led losses Monday, dropping 1.6 percent while Shanghai was 0.8
percent off. Seoul and Singapore each lost 0.7 percent, while Wellington and
Taipei also saw deep losses but Sydney edged 0.3 percent higher.

Tokyo was closed for a public holiday.

However, while investors were in a selling mood JP Morgan Asset Management
global market strategist Kerry Craig said some positives could be taken from
the fact Trump is said to be considering 10 percent tariffs, rather than the
feared 25 percent.

“No more tariffs would still be the best outcome for the markets but with
the US administration seemingly wanting to pursue its longer term strategic
agenda against China, that’s unlikely to be the case, especially as there is
little in the way of pain being felt by the US economy or equity market, he
said.

MORE/HR/0922

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BCN-06

ASIA-MARKETS 2 LAST HONG KONG

“Timing is also important when it comes to enacting any new tariffs. A
staggered implementation is being the viewed as the best of a bad situation.”

– Key figures around 0300 GMT –

Hong Kong – Hang Seng: DOWN 1.6 percent at 26,850.27

Shanghai – Composite: DOWN 0.8 percent at 2,661.03

Tokyo – Nikkei 225: Closed for a public holiday

Euro/dollar: UP at $1.1633 from $1.1627 at 2030 GMT on Friday

Pound/dollar: UP at $1.3075 from $1.3069

Dollar/yen: UP at 112.05 yen from 112.00 yen

Oil – West Texas Intermediate: DOWN nine cents at $68.90 per barrel

Oil – Brent Crude: DOWN four cents at $78.05 per barrel

New York – Dow Jones: FLAT at 26,154.67 (close)

London – FTSE 100: UP 0.3 percent at 7,304.04 (close)

BSS/AFP/HR/0925