- Asian equities fell to 14-month lows today.
- Investor confidence takes a hit amid escalating trade tensions.
- EM currency slide is adding to the woes.
The stock markets across Asia fell to a 14-month low today as investor confidence waned amid rising US-China trade tensions.
MSCI’s broadest index of Asia-Pacific shares ex-Japan fell 0.10 percent to levels last seen in July 2017. Japan’s Nikkei and Shanghai Composite index fell 0.3 percent each. Meanwhile, Australian shares shed only 0.10 percent.
The US-China trade conflict intensified yesterday after the world’s second-largest economy told the World Trade Organization (WTO) that it wanted to impose sanction worth $7 billion a year on the US in response to Washington’s non-compliance with a ruling in a dispute over US dumping duties.
The mood is also being dimmed by the slide in the EM currencies. For instance, the USD/INR rose to fresh highs above 72.00 on Tuesday and looks set to rise further in response to a sharp rise in oil prices.
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