Investing.com - Asian stocks rose in morning trade on Wednesday as investors shrugged off intensifying U.S.-China trade dispute.
Beijing announced retaliatory tariffs that targeted more than 5,000 U.S. products worth $60 billion on Tuesday. The new tariffs would take effect on Sep 24, China’s Ministry of Finance said in a statement. The country’s commerce ministry also filed a complaint to the World Trade Organization (WTO) against the U.S., according to reports.
Meanwhile, the Trump administration threatened duties on virtually all Chinese imports.
“China has openly stated that they are actively trying to impact and change our election by attacking our farmers, ranchers and industrial workers because of their loyalty to me,” Trump said on Twitter. “What China does not understand is that these people are great patriots.”
Despite the intensifying trade despite between the U.S. and China, the Shanghai Composite gained 0.9% by 9:50PM ET (01:50 GMT), while the SZSE Component was also up 0.4%. Hong Kong’s Hang Seng Index on the other hand rose 0.9%.
“It looks like the president has decided to increase pressure on China. The market was expecting a 25% rate but the fact that it’s 10% might mean it’s a little bit less of a threat than we thought,” Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, told Bloomberg in a phone interview.
Zaccarelli added that the Chinese showed “restraint” by not copying the White House’s levies on $200 billion in goods. “They’re not matching the U.S. dollar-for-dollar,” he said.
Elsewhere, Japan’s Nikkei 225 traded 1.1% higher in morning trade, with a weaker yen cited as tailwind for equities. The Bank of Japan concludes its meeting later in the day and is widely expected to leave its monetary policy unchanged.
Down under, Australia’s S&P/ASX 200 also rose 0.4%.