- Asian equities continue to recoil on the back of impending US-China trade war tariffs.
- With risk flows backpedaling, indexes are sliding into multi-month lows as investors await good news.
Asian stock markets are seeing red across the board for Friday as broad-market tensions over impending tit-for-tat trade tariffs between the US and China, as well as shaky emerging markets at a time when global growth is already expected to see a knockback without help from embroiled trade wars and trade-damaging protectionist policies.
US President Donald Trump has convinced himself that he is winning the trade war with China, and a further raft of $200 billion worth of Chinese goods are expected in the coming days now that the mandatory public commenting period has ended this week; with China already promising to responding in kind with their own tariffs, investors are bracing for the fallout, and risk flows have gone full-reverse into safe-havens like the Japanese Yen, sinking Asia-session equities, which needed little help bending at the knee today after a ripple in US tech stocks lead the way for continued losses for Friday.
Japan’s Nikkei 225 index is down -0.93% with Tokyo’s Topix off -0.60%; Australia’s ASX 200 index is off about -0.50% on Friday, with the broad Asia-Pacific MSCI index comparable at -0.50%, while Chinese indexes have gone lopsided for today, with Hong Kong’s Hang Seng index down =0.77% and Shanghai’s CSI 300 bourse in the red a relatively sedate -0.11%.
Nikkei 225 levels to watch
Japan’s leading stock index is trading just south of 22,500.00 as the index guts a three-week bull run, dropping from the last peak just above 23,000.00, and support is thin into August’s swing low at 21,850.00, while any bullish recovery potentials will be faced with resistance capping off the action from early 2018’s peaks at 24,100.00.
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