Stock futures slump in Asia as trade-strain simmers

by   |  VIEW 171
Stock futures slump in Asia as trade-strain simmers

On Monday, the 13th of May 2019, the US Stock Futures alongside Asian shares had been witnessing a heavy battering amid intensifying uncertainty over the fate of Sino-US trade deal. Besides, media reports had unveiled earlier on Asia-Pacific trading hours that the US President Donald Trump would be unveiling financial terms and deadlines of tariffs on additional $325 billion of Chinese import, which would likely to yield further wobbling trickle over Asian and Oceanian stocks, in particular on ASX 200.

While this report was being prepared, the E-Mini futures for S&P 500 had already shredded off 1.1 percent of its earlier gains during the morning trading hours in Asia. Besides, the MSCI’s broadest index of Asia-Pacific shares outside Japan had shed 0.2 percent, hovering near two-month low.

Japan’s Nikkei 225 index had been down by 0.91 percent after opening the market as much as 1 percent lower over losses of its US peers on Nasdaq Composite amid an escalating trade tension between United States and China.

Addressing grave concerns over the future of Sino-US trade war, a head of global macro strategy at TD Securities, Michael Hanson said, “Talks are on-going, but our base case is for limited progress and Chinese retaliation.

We see a significant risk for all Chinese imports to be subject to tariffs over the next month or so. The market reaction will ultimately depend on whether China and the U.S. continue to negotiate, whether the remaining $325 billion of U.S.

imports from China also get tariffed, how China retaliates, and what happens to the 232 auto tariffs”. Citing statistics, while this report was being prepared, May 13th, GMT. 01.10, Nikkei was down by 0.65 percent to 21,207.21, and S&P Bombay Stock Exchange Sensitive Index had shed 0.26 percent to 37,462.99, while Hong Kong had posted a gain of 0.84 percent to 28.550.24 and the mainland Shanghai index had added 3.10 percent to 2,939.21 so far over upbeat comments from Chinese foreign ministry, which had said last week following Trump’s tariff hike that the Chinese market would unlikely to be rattled by external proceedings.