- President Trump ramped up rhetoric on trade, sending Asian equities lower on Thursday.
- Trump said China broke trade deal.
Asian stocks are flashing red along with the S&P 500 futures this Thursday morning on escalating trade tensions between the US and China.
President Trump said at a rally in Florida earlier today that China broke trade deal and vowed to vowed not to back down on imposing new tariffs on Chinese imports unless Beijing stops cheating American workers.
Trump’s comments pushed the futures on the S&P 500 lower by 0.30% and seem to have fueled selling in Asian markets.
As of writing, Japan’s Nikkei is trading 1.22% lower on the day. The likes of Shanghai Composite and South Korea’s Kospi are also reporting 1% drop each.
The US stocks dropped with the S&P 500 shedding 0.16% in the overnight trade after China warned retaliatory measures if Trump administration goes ahead with planned tariff hikes on $200 billion of Chinese goods.
Looking forward, the investors may continue to sell risk with Trump ramping up rhetoric on trade. Analysts, however, believe that ultimately color heads will prevail and both sides will struck a deal.
That could happen as despite Trump’s tough stance, Chinese negotiators are heading to Washington for trade talks today.
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