- Asian stocks were mostly lower on Monday, with U.S. futures mixed and oil prices falling. This follows another winning week on Wall Street.
- Weak Chinese lending data and news of the U.S. government’s plan to raise tariffs on a range of Chinese exports have negatively impacted market sentiment.
- “Tariffs on electric vehicles, in particular, could quadruple from 25% to 100%,” according to sources familiar with the Biden administration’s plan.
Asian stock markets experience a downturn following another successful week on Wall Street, with weak Chinese lending data and potential U.S. tariff increases on Chinese exports influencing market sentiment.
Asian Stocks Dip as Wall Street Celebrates Another Winning Week
Asian stocks experienced a downturn on Monday, following another successful week on Wall Street. U.S. futures were mixed, and oil prices saw a decrease. The release of weak Chinese lending data and news of the U.S. government’s plan to raise tariffs on a range of Chinese exports have negatively impacted market sentiment.
U.S. Tariff Increases on Chinese Exports
Reports suggest that the Biden administration is planning to raise tariffs on electric vehicles, semiconductors, solar equipment, and medical supplies imported from China. Tariffs on electric vehicles could potentially quadruple from 25% to 100%. This news sparked selling of some automakers, with Chinese EV maker BYD’s stock dropping 0.6% and NIO slumping 2%.
Impact on Global Markets
Japan’s benchmark Nikkei 225 shed 0.4% to 38,068.88, while Hong Kong’s Hang Seng rose 0.5% to 19,052.14, aided by the buying of technology shares. The Shanghai Composite index edged 0.1% lower, to 3,151.94, following the release of China’s inflation data. South Korea’s Kospi fell 0.5% to 2,715.23 and Australia’s S&P/ASX 200 lost 0.3% to 7,728.70. Taiwan’s Taiex gained 0.6% after leading computer maker TSMC reported its revenue surged nearly 60% in April from a year earlier.
Conclusion
The global stock market is experiencing significant fluctuations due to various factors such as weak Chinese lending data and potential U.S. tariff increases on Chinese exports. Investors and market watchers are advised to stay informed and make decisions based on careful analysis of the evolving market conditions.
