Tuesday 25 September 2018 ,
Tuesday 25 September 2018 ,
Latest News
  • Alliance with corrupt people to fight against corruption, quips PM
  • BNP to hold rally in city Thursday for Khaleda’s release
  • Hearing on writ petition over Khaleda's better treatment Tuesday
  • Amit Shah's "termite" remark on immigrants unwanted, says Bangladesh
  • UN has 'no right to interfere' says Myanmar army chief
8 September, 2018 00:00 00 AM
Print

Asian markets mostly down on China tariff fears

AFP
Asian markets mostly down 
on China tariff fears
Most Asian equities sank yesterday as investors fret that the US will ramp up its trade war with China by imposing fresh tariffs, while chip-makers were among the biggest losers following a sharp sell-off in New York. AFP Photo

Most Asian equities sank yesterday as investors fret that the US will ramp up its trade war with China by imposing fresh tariffs, while chip-makers were among the biggest losers following a sharp sell-off in New York, reports AFP from Hong Kong.

While emerging market contagion fears continue to stalk trading floors, Donald Trump’s protectionist drive returned to the fore following an indication Japan was next in the firing line, while NAFTA talks with Canada amble along.

There was some relief that Trump did not immediately impose levies on $200 billion of Chinese goods after the passing of a deadline for a public consultation.

The threatened tariffs would add to the $50 billion in imports already targeted and mark a major step up in the long-running battle between the world’s top two economies.

Beijing has warned it will immediately retaliate against any measures, fuelling fears of an all-out trade war that is already showing signs of causing a drag on the global economy.

The president also appeared to be preparing to set his sights on Japan, with an opinion piece in the Wall Street Journal saying his good relationship with Tokyo “will end as soon as I tell them how much they have to pay”.

While Trump has mostly taken out his anger with China and Europe, he has often in the past complained of an uneven trade relationship with Japan.

Japan’s Nikkei led losses, ending 0.8 per cent lower with exporters hurt by a stronger yen as dealers ran to the safe-haven unit for shelter from market turmoil.

“The timing of the WSJ story is significant as it serves as a reminder before an expected Japan-US summit later this month, when trade consultations will also likely be held,” said Daisuke Karakama, chief market economist at Mizuho Bank.

Sydney lost 0.3 per cent and Singapore dropped 0.4 per cent. Seoul gave up 0.3 per cent and Manila was 1.1 per cent off, while Taipei shed 0.7 per cent.

Hong Kong was flat after fluctuating through the day, while Shanghai gained 0.4 per cent by the close and Jakarta added 0.7 per cent.

Chip firms joined their Wall Street counterparts in turning south on growing concerns about demand after US semiconductor giant KLA-Tencor softened its outlook for the sector.

Samsung sank almost three per cent in Seoul while

SK Hynix was 3.7 per cent lower. Tokyo Electron dived six per cent and Advantest was more than seven per cent lower.

The “earnings trend in (the) semiconductor sector is bound to weaken further as end-demand remains lacklustre while orders have been at very elevated levels,” Amir Anvarzadeh, senior strategist with Asymmetric Advisors in Singapore, told Bloomberg News.

He called talk of a short, sharp fall over-optimistic.

In foreign exchanges, emerging markets currencies enjoyed some respite after recent losses, with the Indonesian rupiah and South African rand inching higher. The Indian rupee also edged up but was still wallowing around record lows.

Observers have warned of further turmoil as traders fear the crises in Argentina, Turkey and South Africa could spill over into other economies.

The upheaval has revived worries of a repeat from 1997, when a collapse in the Thai baht mushroomed into a much broader Asian economic crisis.

However, Credit Suisse investment strategist Suresh Tantia said the sell-off could provide long-term benefits for dealers.

“Emerging-market equities are handcuffed by trade uncertainty and concerns around contagion risk at this point of time,” he said.

“We believe they offer tremendous value as the growth outlook for EM remains healthy and valuations have become very attractive.”

In early trade, London was flat, while Paris edged up 0.3 per cent and Frankfurt gained 0.2 per cent.

 

Comments

Poll
Today's Question »
Terming the recently formed 'National Unity' a 'hotchpotch' one, AL General Secretary Obaidul Quader said he does not think this unity will survive. Do you agree?
 Yes
 No
 No Comment
Yes 100.0%
No 0.0%
No Comment 0.0%
Most Viewed
Digital Edition
Archive
SunMonTueWedThuFri Sat
01
02030405060708
09101112131415
16171819202122
23242526272829
30

Copyright © All right reserved.

Editor : M. Shamsur Rahman

Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Editor : M. Shamsur Rahman
Published by the Editor on behalf of Independent Publications Limited at Media Printers, 446/H, Tejgaon I/A, Dhaka-1215.
Editorial, News & Commercial Offices : Beximco Media Complex, 149-150 Tejgaon I/A, Dhaka-1208, Bangladesh. GPO Box No. 934, Dhaka-1000.

Disclaimer & Privacy Policy
....................................................
About Us
....................................................
Contact Us
....................................................
Advertisement
....................................................
Subscription

Powered by : Frog Hosting