US-Sino trade spat weighs on Asian markets.
Stephanie Jacob | 06 Jul 2018 00:30
Markets across the region continue to be jittery as investors nervously watch developments on the China-US trade dispute front.
“This spat has been the main factor for the recent market performances and the ongoing negotiations will dominate market movements,” iFAST Sdn Bhd analyst Tan Wei Yine tells FocusM.
He adds that although tariffs were announced a while back, it is not clear exactly how much the tit-for-tat tariffs will have on the larger global economy. It is this uncertainty which has weighed heavily on market sentiment and investors are adopting a wait and see approach or a risk-off attitude.
“As the tariffs are imposed, trade figures will indicate their impact on the global economy,” notes Tan.
An analyst also believes that the uncertainty over the impact of the tariffs has led to “subdued sentiment for assets like equities.” Also, there is the fear that the implementation of this first tranche of tariffs could spark an all-out trade war between the two economic giants.
Download and read the latest issue of Focus Malaysia here: