Logo of Phnom Penh Post newspaper Phnom Penh Post - Markets in Asia rise after Trump tariff threat

Markets in Asia rise after Trump tariff threat

Markets in Asia rise after Trump tariff threat

Asian markets mostly rose on Tuesday after Donald Trump said he would hit China with another round of tariffs but give some room for talks before jacking them to the highest rate.

The latest volley from the White House will see $200 billion worth of goods taxed at 10 per cent from September 24, going up to 25 per cent from January 1 if the sides are unable to hammer out a deal.

Trump also warned that another $267 billion had been lined up if Beijing retaliates.

With $50 billion of goods already being hit, that would mean Washington will have subjected virtually all goods China ships to the US to tariffs.

China on Tuesday warned it would “take countermeasures”, adding that the “US insists on increasing tariffs, which brings new uncertainty to the consultations between the two sides”.

‘Room to negotiate’

After an early sell-off, Asian markets enjoyed a bounce on hopes officials from the world’s top two economies will be able to thrash out an agreement before the end of the year.

The optimism has been boosted by the fact Trump left off some key items from the latest target list, while he is also due to meet Chinese President Xi Jinping in November and will likely want a deal in place.

“While the US tariffs salvo is hardly middling, it’s not as bad as it could have been, so unless China hits with draconian measures, markets should remain supported after this morning’s knee-jerk reactions,” said Stephen Innes,
head of Asia-Pacific trading at OANDA.

“Ultimately the graduated tariff hike allows more room to negotiate before the thumping 25 per cent levy gets triggered, so perhaps China may temper their response accordingly.”

By the end of the day Shanghai had rallied 1.8 per cent and Tokyo was up 1.4 per cent, while Hong Kong gained 0.6 per cent. Seoul gained 0.3 per cent.

However, Sydney dipped 0.4 per cent and Singapore 0.1 per cent.

MOST VIEWED

  • Schools to be reopened in ‘three stages’

    With guidance from Prime Minister Hun Sen, the Ministry of Education, Youth and Sport, is in the process of reopening schools in three stages. But no timeline has been set, ministry spokesperson Ros Soveacha said on Thursday. Soveacha said the first stage will be to

  • Thai border crossings eased

    The Cambodian Embassy in Thailand said in an announcement on Wednesday that Thailand’s government has allowed certain passengers from several countries to enter its borders. The visitors must go back to their country immediately after their duties in Thailand are fulfilled, the embassy said.

  • Gov’t says tourism recovers slightly despite pandemic

    The Ministry of Tourism and the Phnom Penh municipal administration have recognised 33 tourism businesses in the capital which have consistently implemented safety measures for tourists and adhered to the code of conduct issued by the ministry. Recently, the ministry announced that tourism businesses had to

  • Mull ASEAN border opening, PM urges

    Prime Minister Hun Sen has requested that ASEAN launch a scenario for gradually reopening cross-border travel and trade between countries in the region. He said ASEAN has had more success combating Covid-19 compared to other regions. The prime minister’s request was made at the

  • Ministry reports 11 new Covid-19 cases, reiterates vigilance

    Minister of Health Mam Bun Heng has urged people to continue practising virus prevention techniques after 11 people tested positive for Covid-19 within two days after arriving in the Kingdom. Speaking on Sunday, Bun Heng stressed the importance of washing hands, wearing masks or scarves when

  • Nine on Indonesia flight Covid-19 positive

    The Ministry of Health on Saturday confirmed nine more imported cases of Covid-19. The nine ‒ eight Cambodians and one Indonesian, aged 22 to 26 ‒ arrived in Cambodia on Thursday via a direct flight from Indonesia and are receiving treatment at the Khmer-Soviet Friendship Hostipal in Phnom Penh.

  • Kingdom’s financial sector healthy

    Cambodia's financial sector remains on a sustainable growth path despite the Covid-19 pandemic squeezing crucial industries, National Bank of Cambodia (NBC) governor Chea Chanto said. Tourism, garments and footwear have borne the brunt of the Covid-19 impact, he said, whereas the financial and agriculture sectors

  • Vietnam told to remove border tents

    Kandal provincial governor Kong Sophoan has ordered local authorities to prohibit the construction of buildings in areas bordering Cambodia and to report any irregularities immediately. Recently, Vietnamese officials removed another seven tents from the border area with Cambodia. His remarks were made on Wednesday afternoon

  • Migrant workers set to return from Malaysia

    The Ministry of Foreign Affairs and International Cooperation confirmed on Thursday that 158 Cambodian students and migrant workers will fly home from Malaysia on Friday morning. This is the second flight to bring Cambodians home from Malaysia. A ministry notice said Malaysia Airlines Flight MH754 will

  • Cambodia to remain neutral on ASEAN-China territorial dispute

    Minister of Foreign Affairs and International Cooperation Prak Sokhonn told an informal meeting of ASEAN foreign ministers on Wednesday that Cambodia will stay neutral on the South China Sea. He appealed to all stakeholders to continue fostering a conducive environment that contributes to the end