Business, Asian stocks lower on impending trade war

Business, Asian stocks lower on impending trade war

Business, Asian stocks lower on impending trade war

Asian stocks ended on a mixed note Thursday as lingering trade war fears and a public holiday in the US discouraged traders from taking long positions ahead of the July 6 deadline when the USA administration is due to slap tariffs on $US34 billion worth of Chinese goods.

Computer stocks such as Aisino Corporation and Suzhou Chunqiu Electronic Technology Co both edged up by over 4 percent.

After falling as much as almost 1 percent, China's Shanghai Composite Index rose 0.6 percent to 2,750.72.

Seoul stocks fell amid selling by foreign investors on brewing concerns of a full-fledged trade war between the USA and China.

The Hang Seng Index shed 0.21 percent, or 59.58 points, to close at 28,182.09.

The S&P 500 index rose 0.9 percent to 2,736.61.

Despite the rebound on Friday, the Shanghai Composite Index this week plunged 3.52 percent, ending the first seven weeks in a row of drops since 2011.

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The minutes from the Federal Reserve's June meeting, due out later in the day and Friday's report were also on investors' radar.

"The market actually is acting very calmly", said Francis Lun, chief executive of GEO Securities Hong Kong.

India's Sensex was little changed, Indonesia's Jakarta Composite index was declining 0.2 percent and the Taiwan Weighted fell over 1 percent while Singapore's Straits Times index was rising 0.2 percent. "But of course, the talk of a trade war already depressed the market for about 1,000 points in the past month already".

The United States' 25-percent additional tariffs on Chinese products, worth US$34 billion, came into force on Friday. "Investors know what's going to happen and it has already been priced in", said Li Liuyang, senior foreign exchange analyst at China Merchants Bank in Shanghai, referring to the yuan market.

"The Trump administrations trade war is finally upon us", said Stephen Innes, Asia-Pacific head of trading at OANDA.

China has vowed to hit back immediately with a similar amount in tariffs. "If this moves off the tit-for-tat battleground into a full out trade war, it will not only threaten market stability but could compromise relations between Washington and Beijing". The contract fell $1.20 on Thursday. Brent crude, used to price global oils, lost 14 cents to $77.25 per barrel in London.

The dollar strengthened to 110.67 yen from 110.60 yen while the euro fell to $1.1687 from $1.1691.

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