Asian Markets Stumble Again As Trade Fears Persist 12 September 2018
The sell-off on Asian markets extended into Wednesday with investors fearing an escalation in the US-China trade row after Beijing said it planned to impose anti-dumping sanctions worth billions on Washington
Hong Kong, (UrduPoint / Pakistan Point News - 12th Sep, 2018 ) :The sell-off on Asian markets extended into Wednesday with investors fearing an escalation in the US-China trade row after Beijing said it planned to impose anti-dumping sanctions worth billions on Washington.
The news adds to a sense of pessimism across trading floors in recent weeks as the world's top two economic powers stand on the cusp of an all-out trade war that observers fear could batter the global economy.
China said Tuesday it would ask the World Trade Organization next week for permission to impose more than $7 billion in sanctions annually on the United States over anti-dumping practices. The WTO will discuss the issue on September 21.
Beijing's call comes after Donald Trump threatened to impose tariffs on all goods coming from China, which he says is using unfair trade practices that are harming American jobs. He has also railed against his country's massive trade deficit with China, which hit a record high last month.
On Wednesday China's Vice Premier Hu Chunhua warned that protectionism poses a "serious hazard" to growth and cautioned "individual countries" against isolationism, in a veiled reference to the ongoing row.
"We are seeing heightened volatility and risk aversion in financial markets -- that trend is likely to continue for the next few weeks." The losses came despite a positive lead from Wall Street, where energy firms were boosted by a more than two percent rally in oil and technology firms were supported by bargain-buying.
Both main crude contracts extended gains Wednesday, providing support to energy firms, with eyes on the US east coast as Florence barrels in.
"There is a strong possibility Hurricane Florence moves to a Category Five storm before it hits land and it is already a major disruptor on the US east coast gasoline market as mass evacuations stretch supplies and Florence's heavy rains endangers major fuel pipelines," said Rodrigo Catril, senior foreign exchange strategist at National Australia Bank.
- Key figures around 0810 GMT - Tokyo - Nikkei 225: DOWN 0.3 percent at 22,604.61 (close) Hong Kong - Hang Seng: DOWN 0.3 percent at 26,345.04 (close) Shanghai - Composite: DOWN 0.3 percent at 2,656.11 (close) London - FTSE 100: UP 10 percent at 7,280.63 Euro/dollar: DOWN at $1.1599 from $1.1600 at 2040 GMT Pound/dollar: UP at $1.3029 from $1.3026 Dollar/yen: DOWN at 111.50 Yen from 111.57 yen Oil - West Texas Intermediate: UP 55 cents at $69.80 per barrelOil - Brent Crude: UP eight cents at $79.14 per barrelNew York - Dow Jones: UP 0.4 percent at 25,971.06 (close)