Stock Market: Asian stocks drop as US-China Trade Dispute Escalate
May 14, 2019 | Tuesday
Asian shares on Tuesday afternoon drops following the day Beijing increases tariffs on American goods. That move was China's retaliation against Washington for implementing an increased tariff on more than $2 billion worth of goods.
In Chinese mainland market also drop during the afternoon. The Shanghai composite down by 1.58 percent. Shenzhen composite also went down by .490 percent.
Meanwhile, Hong Kong's Hang Seng index fell by 1.58 percent while shares of Chinese tech giant Tencent also slipped more than 2 percent. Japan's Nikkei also fell by 0.78 percent during the afternoon trade along with its shares of index heavyweight and conglomerate Softbank Group in which slips more than 5 percent. Topix index also dropped 0.66 percent.
Elsewhere, in South Korea, Kospi jumped its overall trend inclining near 0.2 percent. The tech giant Samsung Electronics and chipmaker SK Hynix also recover its early drops.
Furthermore, Australia's ASX 200 also dropped by 0.9 percent. Most of its sectors declined in today's session.
The US-China Trade War
On Monday, China announced its plan to raise tariffs for U.S. goods worth $60 billion, effective on June 1. The targeted goods included in the tariff hike were within the range of U.S. agricultural products. This action was part of China's retaliation option against last week's tariff increase by the U.S. President Donald Trump on more than $200 billion worth of Chinese goods. Increasing them mostly by 25 percent from its 10 percent tariff.
Monday evening during a White House event, President Trump provided an estimate as to when the negotiation breakthrough with China could be revealed.
According to reports, President said, "We'll let you know in three or four weeks if it's successful."
Even before the heated events, the market anticipated both economic powerhouses to reach a deal and end a protracted trade dispute.
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