China’s stocks underperform the region after US raises import tariffs on a range of Chinese goods
- US-China tensions spiked after the Washington moved to increase levies on a range of Chinese imports, triggering a pledge from Beijing it would take necessary action
- Nomura says ‘concerned China may face similar trade-restrictive measures from other regions’ after criticism from its major trade partners
The Shanghai Composite Index slipped 0.8 per cent to 3,119.90 at the close. The CSI 300 Index retreated 0.9 per cent, while the Shenzhen Composite Index slid 0.8 per cent.
Mainland China underperformed other major Asian markets that rallied ahead of a US inflation report that could press the case for an interest-rate cut by the US Federal Reserve in September. Japan’s Nikkei 225 climbed 0.1 per cent, while Australia’s S&P/ASX 200 added 0.4 per cent and Taiwan’s Taiex index advanced 0.8 per cent. Hong Kong’s stock markets were shut for a public holiday and will resume trading on Thursday.
Japanese investment bank Nomura said while the higher tariffs would affect US$18 billion worth of Chinese products and less than 1 per cent of China’s total overseas shipments, the larger concerns were with consequences of the ripple effect.