Asian Markets Declined Amid Trade War Fears

 

Most markets in the Asia-Pacific region fell on Tuesday, November 26, following US President-elect Donald Trump's threat to impose sharper new tariffs on Chinese, Mexican, and Canadian imports. Trump announced plans for a 10% tariff on Chinese imports and 25% tariffs on Mexican and Canadian products on November 25. His announcement dampened optimism in Asian markets over the nomination of Scott Bessent, seen as a market-friendly voice, for Treasury secretary.

 

 

 

 

Shifting to the performance of each market, Japan’s Nikkei 225 dropped 0.87%. South Korea’s KOSPI shed 0.55%. India’s Nifty 50 falls 0.20%, dampened by allegations of bribery and fraud against Adani Group executives. Australia’s S&P/ASX 200 declined 0.69%.

 

 

Chinese markets showed the difference with the Shanghai Composite Index closing down 0.12% but the Hang Seng Index closing up 0.04%. UBS analysts said in a report on Nov. 25, that China may take new fiscal measures to curb the impact of any potential tariff impacts and take retaliatory measures against the US during its political meetings in December.

 

 

Nonetheless, the prospect of a renewed U.S.-China trade war could add more disruptions to global trade, potentially shaking China's export dominance and affecting other Asian economies.

 

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