Hong Kong (September 07, 2018): Most Asian equities sank, as investors fret that the US will ramp up its trade war with China by imposing fresh tariffs.
According to details, as 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. However, Beijing has warned it will immediately retaliate against any measures, fueling fears of an all-out trade war that is already showing signs of causing a drag on the global economy.
While Trump has mostly taken out his anger with China and Europe, he has often complained of an uneven trade relationship with Japan.
Chip firms joined their Wall Street counterparts in turning south on growing concerns about demand following a lowering of expectations by a US giant.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”.
In this trend, Samsung sank almost 3% in Seoul, while Tokyo Electron dived 6% and Advantest was more than 7% lower.
Observers have warned of further turmoil as traders fear the crises in Argentina, Turkey and South Africa could spill over into other economies.