- Trade fears are once again on the rise as markets brace for US-China tariffs.
- Emerging markets remain weak, further sapping investor confidence in the Asian markets.
Asian equities are back on the bearish bandwagon for the new trading week, seeing declines as buyers get squeezed out of indexes by the US-China trade conflict, with emerging markets remaining unstable.
The US’ public commenting period on a 25% tariff on approximately $200 billion worth of Chinese goods will be ending on Thursday, and US President Donald Trump looks set to impose the new tariffs immediately afterward. Markets are already borrowing stress from the week ahead, sending indexes in the broader Asian markets lower.
Emerging markets also remain weak after recent selloffs lead by the Turkish Lira, which collapsed under tariff pressure from the US, and fears of debt contagion and knock-on selloffs in other soft-bellied emerging market assets have seen global markets strike a cautious tone across the board.
Japan’s Nikkei 225 index is down -0.65% for Monday, with the Tokyo Topix index also down almost a full percent, with the MSCI broad Asia-Pacific index down around -0.30%, while Australia’s ASX has so far avoided most of the day’s damage, holding flat at 6,320.00; Chinese equities are fairing worse for the day, with Hong Kong’s Hang Seng index down -0.95% and Shanghai’s CSI 300 bourse in the red by -1.05% to kick off the new week.
Nikkei 225 levels to watch
Japan’s leading equity index is back into 22,700.00 for Monday, continuing to trade softly after reaching up to mark in a new high over 23,000.00 last week, a fresh value for the index after January’s rapid tumble from 24,130.00, and buyers will be keen to keep the Nikkei propped up over the last swing low at August’s bottom of 21,850.00.
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