Asian stocks fall due to China trade concerns and rate anticipation, with EU imposing tariffs on Chinese vehicles.

From Investing: 2024-07-07 22:43:06

Most Asian stocks fell on Monday, led by Chinese markets, amid trade war concerns with the West and anticipation of interest rate signals. U.S. stock index futures drifted lower in Asian trade while middling economic data from Japan and Australia also weighed on regional stocks. Chinese stocks sank as trade jitters persisted, with the EU imposing tariffs on Chinese electric vehicles.

China’s indexes fell 0.3% and 0.5%, while Hong Kong’s index slid 1.5%. The EU tariffs on Chinese goods mirrored a move by the U.S., sparking fears of worsening trade ties with Beijing. Chinese stocks were already on a decline from their 2024 peaks, with focus now turning to potential stimulus measures from the Chinese Communist Party.

Japanese stocks retreated slightly after nearing record highs, driven by foreign buying as the yen weakened. Doubts over more interest rate hikes in Japan amid weak growth presented a positive outlook for stocks. Japanese economic data showed growth at its fastest pace in 31 years, with a bigger-than-expected trade surplus and increased industrial production.

Broader Asian markets were subdued, with concerns over China affecting Australia’s market and commodity prices impacting major mining stocks. Australian economic data showed unexpected contractions in retail sales and building approvals. South Korea’s market fell slightly, while India’s index futures pointed to a positive open after hitting record highs.



Read more at Investing: Asian stocks dip as China trade risks persist; more rate cues awaited By Investing.com