Asian shares fell to a three-and-a-half month low amid US-China trade war. Chinese markets that were pummeled in early trade trimmed losses amid signs of state support.
The losses were contained after conciliatory comments from U.S. President Donald Trump. Both the Shanghai Composite and the blue-chip CSI300 opened down one per cent, but recovered some of these losses.
Australian shares lost 0.9 per cent while Japan’s Nikkei stock index slid 0.8 per cent, touching its lowest since mid-February. Earlier, Donald Trump said he is holding fire on taxing the remaining 325 billion Dollars of Chinese goods. He also announced that he will meet with Chinese President Xi Jinping next month.
His comments came after China announced yesterday higher tariffs on 60 billion Dollars of U.S. goods, effective 1st of June. The measure is in retaliation for Washington’s decision last week to hike its own levies on 200 billion Dollar in Chinese imports.
Meanwhile, China blamed US policies for creating what it called an existential crisis at the World Trade Organization, WTO. Beijing urged reform of the WTO to help it withstand the pressure from Washington.
In a document posted on the WTO website yesterday, China cautioned that a range of recent unilateralist and protectionist practices had undermined the authority and efficacy of the WTO. (AIR NEWS)