Chinese investors respond when they monitor stock prices in a brokerage office in Beijing on Tuesday, May 14, 2019. Stocks opened moderately lower in Asia on Tuesday after a stupid day on Wall Street when investors fled uncertainty over China-US. trade standoff. (AP Photo / Andy Wong)
Shares fell moderately in Asia on Tuesday after a stupid day on Wall Street when investors fled uncertainty over China-US. handelsstandoff.
The Shanghai Composite Index went down 0.2% to 2,896.60, while Japan's Nikkei 225 gave up 0.6% to 21
Elsewhere in Asia, South Korea's Kospi managed 0.2% to 2.082.83 while S&P ASX 200 in Australia fell 0.9% to 6.238.40. Stocks fell in Taiwan and Southeast Asia.
Investors already slipping by putting up tensions between Beijing and Washington got an extra shot when China announced late Monday that raising US $ 60 billion tariffs from US imports for the Trump administration's recent hike in Chinese import duties export.
"A clear hardening of attitudes, with state media flipping that China will fight to the end, has drawn concerns for a prolonged and extended trade war," Mizuho Bank said in a comment.
Nevertheless, since the Beijing tariff increases first come into effect on June 1, and those discovered by Washington, apply only to goods shipped after May 10, which will take a few weeks or more to come to the United States, it is Still free time to find a compromise in festering the dispute over Chinese efforts to get a lead in advanced technology through means that Trump administration says is unfair and violates world trade rules.
The Do w Jones Industrial Average cast more than 600 points on Monday and the benchmark index S & P 500 index had its biggest loss since January. The sales outlet expanded the market's slide to another week and helped erase market gains from April.
Technological companies, which do a lot with China, led the way lower. Chipmakers were among the biggest decliners. Apple also took large losses, tumbling 5.8%. Agriculture Consultant Deere ran losses in the industrial sector.
Hoping the world's two largest economies were on track to resolve their dispute over trade and technology helped push the market to its best annual start for decades.
It has given way to worrying that a full blown trade war might shrink what is otherwise a most healthy economy.
"The bigger problem of tariffs is not the specific amounts of the tariffs at any given time, but the uncertainty surrounding these charges and" what's next? "Of a growing trade war," says Willie Delwiche, investment strategist at Baird. global economy, and can then weigh on the US economy. "The Dow lost 2.4% to 25,324.99, at one point, 719 points fell. Apple and Boeing, who both receive substantial revenues from China, were Dow's biggest decliners
The riding company Uber tumbled another 10.8% on its first full day of trading after its rocky debut on the stock market Friday, which had priced at $ 45 at its first public offering, closing at $ 37.10.
The The broader S & P 500 index fell 2.4% to 2,811.87, while the Nasdaq, heavily weighted with technology stocks, went 3.4% to 7.647.02.
The Russell 2000 Small Business Index lost 3.2% to 1.523
Trade talks between the United States and China closed Friday with no agreement and with US increasing import tariffs of NOK 200 billion of Chinese goods to 25% from 10%. Officials also said they are preparing to extend tariffs to cover an additional $ 300 billion of goods.
Another sign of investor jets, the VIX index, which measures how much volatility the market expects in the future, spiked 28.1%.
The increase in tariffs announced in Beijing on Monday includes goods such as soybeans, and puts pressure on American farmers. The price of soybeans was 0.8% to $ 8.04 a bushel Monday. They traded around $ 9 in a bushel last month and now have the lowest price since December 2008. Falling prices have put pressure on American farmers.
The prices of US government bonds, which are considered to be ultra-secure investments, rose sharply, sending dividends lower. The yield on the 10-year Treasury fell to 2.41% from 2.45% late Friday.
Energy futures recovered, while US commodities increased 18 cents to $ 61.22 per barrel in electronic commerce on the New York Mercantile Exchange. It lost 62 cents or 1% to pay $ 61.04 a barrel on Monday. Brent crude, the international standard, raised 29 cents to $ 70.52 per barrel.
The dollar rose to 109.58 Japanese yen from 109.31 yen on Monday. The euro rose to $ 1,1236 from $ 1,1223.
AP Business writers Damian J. Troise and Alex Veiga contributed.