Worst were the indicators of India, Taiwan, Malaysia and the Philippines
Reaction to the new US tariff on the major marketplaces in Asia have surprised the experts. Stock exchanges of Japan, China, South Korea ended in positive territory. While the leaders of the fall in Asian steel indicators, India, Taiwan and Malaysia, and the Philippines.
According to Interfax, Hong Kong’s Hang Seng was up 0.6%, China’s Shanghai Composite 1.8%, the Shenzhen Composite 1.7%. Japan’s Nikkei 225 rose 1.4%, the broader Topix index by 1.8%, with a positive trend demonstrated all 33 industry indicator within Topix. The most significant rise was observed in oil and gas, chemical and automotive industries.
Stock prices of major Japanese banks and insurers rose as the yield on 10-year US Treasuries returned to 3%: Dai-ichi Life gained 4.2 percent, T&D – 5%, Sumitomo Mitsui and 1.5%, Mitsubishi UFJ and 1.7%, respectively.
- Washington announced the introduction of the 10 percent duties on Chinese goods worth $200 billion a year from 24 September and warned that the tariff will increase to 25% from 1 January 2019, if Beijing does not make concessions.
- Moreover, the President of the United States Donald trump warned that in the case of a reflex action on the part of China duty can be further extended to goods in the amount of $267 billion.
- Thus, taking into account the existing measures on $50 billion in duties would be levied almost the entire volume of Chinese imports in the U.S., which exceeds $500 billion per year.
- The Ministry of Commerce of China announced its intention to respond to new import duties on Chinese goods in the United States the same measures and at the same time – from 24 September.