Asian stocks are set for a mixed open on Thursday as trade tensions between the U.S. and China simmer after the Trump administration on Tuesday announced a list of Chinese goods that may be subject to new tariffs.
Nikkei futures traded in Chicago were up 0.38 percent compared to the index’s previous close while Australian SPI futures were lower by 0.13 percent at the end of Wednesday.
Global stock markets declined in the last session on the back of the latest developments in the ongoing trade dispute: The Dow Jones Industrial Average declined 0.88 percent, or 219.21 points, to close at 24,700.45, the S&P 500 slid 0.71 percent to 2,774.02 and the Nasdaq composited edged down by 0.55 percent to end at 7,716.61.
The reversal in market sentiment came after the Trump administration on Tuesday unveiled a list of 10 percent tariffs on $200 billion in Chinese products. The duties will take effect only after a review process is completed.
In response, China threatened to retaliate with “qualitative measures,” Reuters said, with the country’s commerce ministry adding that it would complain to the World Trade Organization.
This latest salvo also came just days after tariffs from the U.S. and China on $34 billion in products from each country took effect on Friday.
European and Asian equities slumped on Wednesday on the back of the latest ramp up in trade tensions between the world’s two largest economies, which investors fear could negatively affect global growth. The pan-European Stoxx 600 closed down 1.2 percent while China markets led the declines in Asia, with the Shanghai composite dropping 1.78 percent.
The dollar was broadly firmer amid the jitters, with the dollar index last at 94.720. Against the yen, the dollar traded at 111.94 at 7:12 a.m. HK/SIN after climbing above the 112 level overnight.
On the commodities front, Brent crude futures dropped 6.9 percent to settle at $73.40 per barrel, the largest drop in one day since 2016. U.S. crude futures settled 5 percent lower at $70.38. The declines in prices came as supply came into focus on news that Libya would be resuming exports.
Here’s the economic calendar for Thursday (all times in HK/SIN):
- 9:00 a.m.: South Korea central bank interest rate decision
- 10:00 a.m.: China FDI
