Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Asian Stocks Fall Following Wall Street Plunge; U.S.-China Trade Deal in Focus

Published 12/04/2018, 09:07 PM
Updated 12/04/2018, 09:07 PM
© Reuters.

© Reuters.

Investing.com - Asian stocks fell in morning trade on Wednesday following a plunge on Wall Street overnight.

The Dow Jones Industrial Average fell 3.1%, the S&P 500 declined 3.2% while the Nasdaq Composite dropped 3.8%.

The plunge in U.S. stocks came after top White House economic adviser Larry Kudlow backtracked from U.S. President Donald Trump’s announcement that Beijing had agreed to reduce tariffs on U.S.-made cars.

“It hasn’t been signed and sealed and delivered yet,” Kudlow said on Fox News Tuesday.

In Asia, the Shanghai Composite and the SZSE Component fell 0.6% and 0.5% respectively. Hong Kong’s Hang Seng Index traded 1.6% lower.

Following Saturday’s dinner, the U.S. and China agreed to halt the planned increase in tariffs to 25% from 10% on Chinese imports. However, the remaining details of what was agreed at the dinner were unclear.

China’s Ministry of Commerce released its first official statement on the meeting on Wednesday and said the trade meeting with the U.S. was “very successful”, but did not provide any further details on the outcome of the meeting.

An earlier report by the Washington Post claimed that China was 'puzzled and irritated' by Trump administration's announcement following the meeting.

"You don't do this with the Chinese. You don't triumphantly proclaim all their concessions in public. It's just madness," the Post reported citing people familiar with the matter.

There are "significant differences" between the two countries’ versions of what was agreed upon at the dinner, according to the Post.

Japan’s Nikkei 225 slipped 0.3% after data showed the Markit/Nikkei Japan Services Purchasing Managers Index (PMI) stood at 52.3 on a seasonally adjusted basis in November, compared to October's six-month high of 52.4.

South Korea’s KOSPI fell 0.4%, while Australia’s ASX 200 was down 1.4%.

In other news, suppliers to Apple Inc (NASDAQ:AAPL).’s iPhone underperformed after chipmaker Cirrus Logic Inc (NASDAQ:CRUS) cut its December-quarter revenue outlook due to “recent weaknesses in the smartphone market.” TSMC (TW:2330) fell 3.4%, Pegatron Corp (TW:4938) and Hon Hai Precision Industry Co Ltd (TW:2317) dropped almost 2%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.