The general trend of stock indices in the Asia-Pacific region is declining, as inflation concerns outweighed the optimism created by US President Joe Biden’s comment that his government is considering reducing tariffs on imported goods. .
On the board, the Japanese Nikkei fell 0.89% to 26,761.50 points, with South Korea KOSPI to lose 1.50%, while in Hong Kong o Hang Seng falls 1.77%. In mainland China, the Shanghai “loses” 1.53%, while Shenzen records losses of 1.93%. In Taiwan, the Taiwan Weighted lost 1.19%, while in Australia the S & P / ASX 200 lost 0.28%.
Mr Biden, who announced a new economic and trade initiative for the wider Indo-Pacific region on Monday during a visit to Japan, confirmed to the press that he would discuss the issue of the punitive tariffs imposed by the government of former President Donald Trump in China with Finance Minister Janet Yellen when he returns to Washington.
“I will talk to the secretary when I return to the United States. I am considering it,” he said.
The comments sparked optimism about easing tensions between the world’s two largest economies, but some were skeptical.
“The debate over China’s export tariff cuts has been on the table again and again, and this point has been a source of frustration for markets,” said Yeap Jun Rong, market strategy analyst at IG Singapore.
The manufacturing index for May in Japan moved with the smallest increase in the last quarter of May, as supply congestion slowed production, according to Reuters.
In corporate news, Toyota announced on Tuesday that it would cut its global production by 100,000 to 850,000 vehicles in June due to a lack of semiconductors.
Investors are looking at the impact of the Russia-Ukraine war on commodity prices, but also on the impact of the new pandemic lockdown in China on global growth.
“Russia’s invasion of Ukraine, the wave of Covid-19 infections and lockdowns in mainland China, relentless inflation and tightening financial conditions have disrupted production and put a brake on demand, squeezing the global economy,” he said. Sara Johnson, CEO of S&P Global Market Intelligence.
Source: Capital
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