Latest news with #CSI300
CNBC
2 days ago
- Business
- CNBC
Global stock markets appear numb to Trump's 'reciprocal' tariffs. Here's why
Global markets have largely been indifferent to U.S. President Donald Trump's latest tariffs, a sharp departure from the steep selloff triggered by his April 2 announcement of "reciprocal" duties, as investors grow increasingly numb to what they see as a negotiating tactic. In recent days, the U.S. rolled out new tariffs of 10% to 15% on imports from the EU, Japan, and South Korea, while levying higher 20% duties on products from Taiwan, Vietnam, and Bangladesh. The MSCI All Country World Index, which measures the performance of over 2,500 stocks from both developed and emerging markets, inched higher by around 1.8% since Aug. 1, data from LSEG showed. China's CSI 300, and the 225-stock Nikkei 225 index in Japan also rose more than 1% and 2.5% respectively during this period. India, targeted in part over its continued purchases of Russian oil, saw its tariffs jump from an earlier 25% to 50% on Wednesday on a broad range of goods . The country's benchmark Nifty 50 barely budged in response. Similar resilience was seen in Europe, with the Stoxx 600 posting gains in recent days on corporate earnings, shrugging off the tariff threats. "There is a bit of numbness coming through. I think there's also a lot of precedent in terms of things being announced and then rolled back later," said Steve Brice, global chief investment officer at Standard Chartered Bank's wealth solutions unit. "People are looking at the situation and saying, okay, yes, we've seen these increases in tariffs coming through… but they can be unwound by further trade negotiations. Therefore, it's less of a shock to people now," Brice told CNBC. Typical safe havens also saw a muted response since Aug. 1. The yield on the U.S. 10 year Treasury lost over two basis points across the same period of time, and the U.S. Dollar Index, which measures the strength of the greenback against a basket of currencies, slipped under 2% to 98.11. Spot gold prices rose nearly 3%. This stands in stark contrast to the global market rout that followed Trump's April 2 tariff announcement, when investors rushed out of U.S. equities and bonds, sending gold to hover near all-time highs while the dollar slipped. Stocks tumbled in the aftermath — the U.S. S & P 500 sank roughly 12% between April 2 and April 8, while the MSCI World Index excluding the U.S. dropped more than 8%. Investors' indifference towards Trump's tariff threats recalls a term for his pattern of announcing hefty tariff threats that jolt markets, only to scale them back or delay them, which was coined as "Trump Always Chickens Out" — or TACO . On April 9, the president stunned investors after he announced a 90-day pause in some of his "reciprocal" tariffs and slashed duties to 10% for nearly all U.S. trading partners, sparking one of Wall Street's biggest rallies . The markets bought into Trump's rhetoric in April when he said that his initial tariff positions were his final offer, which explains why equity markets fell heavily, said Hugh Dive, chief investment officer at Atlas Funds. "Subsequent events have seen the U.S. backtracking on its initial positions, which are now seen as the start of a negotiation," he added. DBS Bank's managing director Taimur Baig, echoed a similar stance. "I think the markets are becoming a bit numb to the permanent volatility on these issues," he said, adding that markets attempted to price these in back in April and May, but pauses and repeated negotiations since then have made the markets "incapable of pricing it in any concrete manner." "The market is just not capable of pricing it in because of the chronic uncertainty," he said. The shift in investors' portfolios has also played a role, according to Brice. Earlier this year, many investors were overweight U.S. assets, so the April selloff saw them cut those exposures rapidly, contributing to the steep drop . Now, their exposure to U.S. assets is largely neutral, he said. "So, the need for people to take risks off the table in the U.S. is lower today," he said. Even so, traders should not completely disregard longer-term risks. Atlas Funds' Dive warned that tariffs could continue to undermine business investments by introducing policy uncertainty. For example, any investment decision to move manufacturing to the U.S. to benefit from tariff protections is not made lightly, he said. On Wednesday, Trump announced he would impose a 100% tariff on chip imports, with an exemption for companies that are "building in the United States." "Building a plant may cost hundreds of millions. What happens if the tariffs are removed in 3 years' time? This investment may have to be written off," said Dive.
Business Recorder
2 days ago
- Business
- Business Recorder
China stocks close at highest level since 2021
HONG KONG: China stocks rose for a fourth straight day to close at a 3-1/2-year high on Thursday, as upbeat export data added fuel to the recent market rally despite renewed US tariff threats. The Shanghai Composite index climbed 0.2% to 3,639.67, the highest such close since December 2021. The blue-chip CSI300 index was little changed. China's exports beat forecasts in July with outbound shipments up 7.2% year-on-year, customs data showed, as manufacturers made the most of a tariff truce with the United States. Markets largely looked past US President Donald Trump's comments on Wednesday that he could announce further tariffs on China similar to the additional 25% duty imposed on imports of Indian goods over its Russian oil purchases, depending on what happens. Investors remain focused on an August 12 deadline to see if Beijing and Washington will reach a durable tariff agreement. 'The upward trend is still intact,' analysts at Pacific Securities said in a note, adding markets remain optimistic about US-China trade talks while technical indicators continue to show bullish momentum. Leading onshore gains on Thursday, the rare earth sector rallied 3.2% to near a three-year high. The energy sector added 0.8% and banking index gained 0.4%. The semiconductor sector gave up initial gains to close largely flat after Trump said the US could levy a 100% tariff on some chip imports. In Hong Kong, the benchmark Hang Seng Index reversed earlier losses with a 0.7% gain, and the tech index added 0.3%. Local developers jumped 2.5% as New World Development surged as much as 20% on a report of talks that could potentially take it private.
Business Times
3 days ago
- Business
- Business Times
China stocks close at highest level since 2021 on upbeat trade data
[HONG KONG] China stocks rose for a fourth straight day to close at a 3½-year high on Thursday (Aug 7), as upbeat export data added fuel to the recent market rally despite renewed US tariff threats. The Shanghai Composite index climbed 0.2 per cent to 3,639.67, the highest such close since December 2021. The blue-chip CSI300 index was little changed. China's exports beat forecasts in July with outbound shipments up 7.2 per cent year on year, customs data showed, as manufacturers made the most of a tariff truce with the US. Markets largely looked past US President Donald Trump's comments on Wednesday that he could announce further tariffs on China similar to the additional 25 per cent duty imposed on imports of Indian goods over its Russian oil purchases, depending on what happens. Investors remain focused on an Aug 12 deadline to see if Beijing and Washington will reach a durable tariff agreement. 'The upward trend is still intact,' analysts at Pacific Securities said in a note, adding markets remain optimistic about US-China trade talks while technical indicators continue to show bullish momentum. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Leading onshore gains on Thursday, the rare earth sector rallied 3.2 per cent to near a three-year high. The energy sector added 0.8 per cent and banking index gained 0.4 per cent. The semiconductor sector gave up initial gains to close largely flat after Trump said the US could levy a 100 per cent tariff on some chip imports. In Hong Kong, the benchmark Hang Seng Index reversed earlier losses with a 0.7 per cent gain, and the tech index added 0.3 per cent. Local developers jumped 2.5 per cent as New World Development surged as much as 20 per cent on a report of talks that could potentially take it private. REUTERS
Business Recorder
3 days ago
- Business
- Business Recorder
China, Hong Kong stocks extend gains as Chinese exports beat forecasts
HONG KONG: China and Hong Kong stocks rose in morning trade on Thursday as upbeat Chinese trade data added fuel to the recent market rally despite renewed U.S. tariff threats. China's exports beat forecasts in July with outbound shipments up 7.2% year-on-year, customs data showed, as manufacturers made the most of a tariff truce with the U.S. Markets largely looked past U.S. President Donald Trump's comments that he could announce further tariffs on goods from China, similar to the 25% duties slapped earlier on India over its Russian oil purchases, depending on what happens. Investors remain focused on the August 12 deadline, waiting to see if Beijing and Washington could reach a durable tariff agreement. The market shows a risk-on mood with better China July exports, and domestic conviction remains solid, Wee Khoon Chong, a senior APAC market strategist at BNY, Hong Kong, said in a note. BNY maintains its view that the Shanghai benchmark would test 3,700, he added. At the midday break, the Shanghai Composite index was up 0.1% at 3,638.40, after closing at its highest since late 2021 on Wednesday. The blue-chip CSI300 index was up 0.1%. The semiconductor sector led the way, with a 1.3% gain despite Trump saying the U.S. could levy a 100% tariff on some chip imports, as analysts say the move only has limited impact on Chinese chipmakers and could accelerate domestic production. Defensive sectors including banks, liquor and consumer staples were up 0.2%-0.5%. In Hong Kong, the benchmark Hang Seng Index also reversed earlier losses with a 0.5% gain, and the tech index added 0.5%.
Business Recorder
3 days ago
- Business
- Business Recorder
China, Hong Kong stocks edge higher
SINGAPORE: Mainland China and Hong Kong stocks edged higher on Wednesday, underpinned by market hopes for an extended trade truce between the United States and China to reach a final deal. US President Donald Trump said on Tuesday the US was close to a trade deal with China and that he would meet his Chinese counterpart, Xi Jinping, before the end of the year if an agreement is struck. 'We're getting very close to a deal. We're getting along with China very well,' Trump said. 'Investors were keen to hear about the de-escalation of Sino-US trade tensions since early May,' said Steven Sun, head of research at HSBC Qianhai Securities. Meanwhile, Winnie Chwang, portfolio manager at Matthews Asia, said investors would like to see more clarity from Sino-US trade negotiations. 'I do sense that, while there's been a bit more interest in revisiting the Chinese markets, there are also still investors that sit on the fence, primarily given the still uncertain nature of trade, and it's very difficult to make any sort of confident predictions,' Chwang said. At the midday break, the Shanghai Composite index was up 0.27% at 3,627.54 points, on course for a third straight session of gains. China's blue-chip CSI300 index was up 0.18%. ** Defence and coal shares led gains in morning trades, rising 2.9% and 1.8%, respectively. In Hong Kong, the benchmark Hang Seng Index was up 0.18% at 24,947.45 points, while the Hang Seng China Enterprises Index fell 0.03% to 8,948.78 points. Separately, market attention will shift to a string of domestic economic data due later this week, including trade on Thursday and inflation on Saturday, that will give clues on the health of the economy.
