Asian Stocks Weakened to Lowest of 14 Months While IHSG Rebounded

The Asian capital market fell again this afternoon. China, Hong Kong, Japan, South Korea and Australia compactly touched a 14-month low on Wednesday afternoon after being influenced by negative market sentiment due to rising chaos in US-China trade.

The Shanghai Composite extended losses from the morning, down 0.33% at 12.23 PM, while the SZSE Composite dropped 0.49%. The Hang Seng Index slipped 0.51%, entering deeper into the bearish market area.

Japan’s Nikkei 225 fell 0.44% and South Korea’s KOSPI also fell 0.3%, while in Australia, the S & P / ASX 200 edged down 0.12%. On the contrary, the Joint Stock Price Index (IHSG) continues to be bought by buyers and is still comfortable in the green zone this afternoon.

China is trying to seek approval from the World Trade Organization (WTO) regarding sanctions against US $ 7 billion worth of products due to the latest non-compliance with disputes that indicate the illegality of dumping policies.

It came after Trump’s threat on Friday last week to impose a 25% tariff on more than $ 267 billion on Chinese products, which means all Chinese goods may be subject to levies. The White House said on Tuesday that the US took a firm stance with China.

The US-China Business Council, which represents about 200 American companies doing business in China, said on Tuesday that China was delaying the acceptance of licensing applications from American companies in financial services and other industries, until Washington resolved the problem.

Beijing will likely target the operations of US companies that run American product imports to retaliate, and recall that Washington is considering imposing more tariffs on Chinese goods.

“China is able to respond to tariff restrictions, the government uses what they call” qualitative measures “. You cannot give a number on that, but that is not a futile threat. They really can make it difficult for US companies to operate in China, “said Head of Research and Chief Economist of ING Bank Robert Carnell.

China will release August industrial production and retail sales data on Friday while Australia will also release employment data on Thursday. 

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