BEIJING – Asian stocks were mixed on Monday after Washington and Beijing escalated their trade war with new tariff hikes.
Shanghai advanced while Tokyo and Hong Kong declined. South Korea’s main index was unchanged.
Markets reacted less strongly to the weekend tariff hikes on billions of dollars of goods than to previous increases. Investors are hoping for progress in talks this month, but analysts warn the fight over trade and technology is unlikely to be quickly resolved.
“The short-lived truce will probably provide limited relief,” said Zhu Huani of Mizuho Bank in a report. “Businesses have become increasingly uncertain about future prospects, evidenced by the pullback in business investment amidst growing concerns on growth.”
The Shanghai Composite Index gained 0.7 percent to 2,907.51 and Hong Kong’s Hang Seng lost 0.7 percent to 25,546.70. Tokyo’s Nikkei 225 shed 0.2 percent to 20.653.99.
Seoul’s Kospi was flat at 1,967.76 and Sydney’s S&P-ASX 200 retreated 0.4 percent to 6,579.20. New Zealand and Taiwan gained while Southeast Asia markets retreated.
On Sunday, the United States started charging 15 percent tax on about $112 billion of Chinese imports. China responded by charging taxes of 10 percent and 5 percent on a list of American goods.
The two governments say they are going ahead with talks this month in Washington but neither side has given any sign it might offer concessions. (AP)
