Asian markets fell Wednesday amid concerns over the economic impact of Donald Trump’s presidency, including a potential trade row with China and a resurgence of US inflation driven by his policy shifts.
Asian markets extended losses Wednesday as traders fret over the impact of Donald Trump’s presidency on the Chinese and global economies, with fears his policies could also reignite US inflation.
The possibility that tax cuts, import tariffs, and light regulations might cause prices to spike sent fresh impetus to the dollar, which had already rallied on news of the Republican’s election win last week.
https://twitter.com/NewsNowNation/status/1623892568097570816
Traders are also keeping tabs on bitcoin after it surged within a whisker of breaking $90,000 for the first time, though observers are placing bets on its hitting $100,000 owing to Trump’s pro-crypto campaign pledges.
After an initial rally in the wake of the tycoon regaining the White House, Asian markets have pulled back this week as his cabinet begins to emerge.
The naming of known China hawks to key positions has fuelled concerns about another debilitating trade war between the economic superpowers.
We expect the effective tariff rate on US imports from China to rise to around 40 percent,” Harry Murphy Cruise at Moody’s Analytics said.
“That would effectively double the rate today and be a similar increase to that seen during the first trade war. It’s likely the threat of further tariffs up to the touted 60 percent would be used as a negotiating tool,” he told AFP.
China would almost certainly retaliate by imposing tariffs of similar size.”
The threat of another standoff comes as Beijing struggles to kickstart growth at home – unveiling a raft of measures at the end of September, but leaving traders disappointed with anything new at a much-anticipated announcement Friday.
Asian stocks are mixed Tuesday, with uncertainty about this year’s outlook and into 2025 weighing. Regional markets in Hong Kong, Tokyo, Sydney, Seoul, Taipei, Wellington and Mumbai are all lower.
