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Jordan Times
07-04-2025
- Business
- Jordan Times
Stocks savaged as China retaliation to Trump tariffs fans trade war
HONG KONG — Asian and European equities collapsed on a black Monday for markets after China hammered the United States with its own hefty tariffs, ramping up a trade war many fear could spark a recession. Trading floors were overcome by a wave of selling as investors fled to the hills, with Hong Kong's loss of 13.22 percent its worst in nearly three decades. Taipei socks suffered their worst fall on record, tanking 9.7 percent, while Frankfurt dived 10 percent and Tokyo shed almost eight per cent. Futures for Wall Street's markets were also taking another drubbing, while commodities slumped. US President Donald Trump sparked a market meltdown last week when he unveiled sweeping tariffs against US trading partners for what he said was years of being ripped off and claimed that governments were lining up to cut deals with Washington. But after Asian markets closed on Friday, China said it would impose retaliatory levies of 34 per cent on all US goods from April 10. Beijing also imposed export controls on seven rare earth elements, including gadolinium -- commonly used in MRIs -- and yttrium, utilised in consumer electronics. On Sunday, vice commerce minister Ling Ji told representatives of US firms that Trump's tariffs "firmly protect the legitimate rights and interests of enterprises, including American companies". Hopes that the US president would rethink his policy in light of the turmoil were dashed Sunday when he said he would not make a deal with other countries unless trade deficits were solved. "Sometimes you have to take medicine to fix something," he said of the ructions that have wiped trillions of dollars off company valuations. No sector spared The savage selling in Asia was across the board, with no sector unharmed -- tech firms, car makers, banks, casinos and energy firms all felt the pain as investors abandoned riskier assets. Among the biggest losers, Chinese ecommerce titans Alibabatanked 18 percent and rival shed 15.5 per cent, while Japanese tech investment giant SoftBank dived more than 12 percent and Sony gave up 10 per cent. Hong Kong's 13-per cent drop marked its worst day since 1997 during the Asian financial crisis -- while Frankfurt plunged 10 per cent at one point. Shanghai shed more than seven percent, with China's state-backed fund Central Huijin Investment vowing to help ensure "stable operations" of the market. Singapore plunged nearly eight percent, while Seoul gave up more than five percent, triggering a so-called sidecar mechanism -- for the first time in eight months -- that briefly halted some trading. Sydney, Wellington, Manila and Mumbai were also deep in the red, while London and Paris both dropped around five per cent. "We could see a recession happen very quickly in the US, and it could last through the year or so, it could be rather lengthy," said Steve Cochrane, chief Asia-Pacific economist at Moody's Analytics. "If there's a recession in the US, of course, China will feel it as well because demand for its goods will be hit even harder," he added. Concerns about demand saw oil prices sink more than three percent at one point Monday, having dropped around seven percent Friday. Both main contracts are now sitting at their lowest levels since 2021. Copper -- a vital component for energy storage, electric vehicles, solar panels and wind turbines -- also extended losses. Carnage on Wall Street The losses followed another day of carnage on Wall Street on Friday, where all three main indexes fell almost six per cent. "Over Thursday and Friday, the S&P 500 fell by a massive 10.53 per cent in total, making it the fifth-worst two-day performance since World War Two," said analysts at Deutsche Bank. "Indeed, the only other times we've seen a double-digit loss over two sessions were during Covid-19, the height of the (global financial crisis), and Black Monday 1987." That showing came after Federal Reserve boss Jerome Powell said US tariffs will likely cause inflation to rise and growth to slow, and warned of an "elevated" risk of higher unemployment. "Powell's hands are tied," said Stephen Innes at SPI Asset Management. "He's acknowledged the obvious -- that tariffs are inflationary and recessionary -- but he's not signalling a rescue." While Powell has so far refused to announce any rate cuts, markets are betting he will do soon. Key figures around 0815 GMT Tokyo - Nikkei 225: DOWN 7.8 per cent at 31,136.58 (close) Hong Kong - Hang Seng Index: DOWN 13.2 per cent at 19,828.30 (close) Shanghai - Composite: DOWN 7.3 per cent at 3,096.58 (close) London - FTSE 100: DOWN 4.6 per cent at 7,686.66 West Texas Intermediate: DOWN 4.1 per cent at $59.41 per barrel Brent North Sea Crude: DOWN 4.0 per cent at $62.99 per barrel Dollar/yen: DOWN at 145.80 yen from 146.98 yen on Friday Euro/dollar: UP at $1.1019 from $1.0962 Pound/dollar: UP at $1.2911 from $1.2893 Euro/pound: UP at 85.36 pence from 85.01 pence New York - Dow: DOWN 5.5 per cent at 38,314.86 (close)
Asharq Al-Awsat
07-04-2025
- Business
- Asharq Al-Awsat
Stocks Savaged as China Retaliation to Trump Tariffs Fans Trade War
Asian and European equities collapsed on a black Monday for markets after China hammered the United States with its own hefty tariffs, ramping up a trade war many fear could spark a recession. Trading floors were overcome by a wave of selling as investors fled to the hills, with Hong Kong's loss of 13 percent its worst in nearly three decades, while Frankfurt dived 10 percent, Taipei 9.7 percent and Tokyo almost eight percent. Futures for Wall Street's markets were also taking another drubbing, while commodities slumped. US President Donald Trump sparked a market meltdown last week when he unveiled sweeping tariffs against US trading partners for what he said was years of being ripped off and claimed that governments were lining up to cut deals with Washington. But after Asian markets closed on Friday, China said it would impose retaliatory levies of 34 percent on all US goods from April 10. Beijing also imposed export controls on seven rare earth elements, including gadolinium -- commonly used in MRIs -- and yttrium, utilized in consumer electronics. On Sunday, vice commerce minister Ling Ji told representatives of US firms its tariffs "firmly protect the legitimate rights and interests of enterprises, including American companies". Hopes that the US president would rethink his policy in light of the turmoil were dashed Sunday when he said he would not make a deal with other countries unless trade deficits were solved. "Sometimes you have to take medicine to fix something," he said of the ructions that have wiped trillions of dollars off company valuations. - No sector spared - The savage selling in Asia was across the board, with no sector unharmed -- tech firms, car makers, banks, casinos and energy firms all felt the pain as investors abandoned riskier assets. Among the biggest losers, Chinese ecommerce titans Alibaba tanked more than 17 percent and rival shed 14 percent, while Japanese tech investment giant SoftBank dived more than 11 percent and Sony gave up nine percent. Hong Kong's 13 percent loss marked its worst day since October 1997 during the Asian financial crisis, while Frankfurt plunged 10 percent. Shanghai shed more than seven percent, with China's state-backed fund Central Huijin Investment vowing to help ensure "stable operations" of the market. Singapore plunged nearly eight percent, while Seoul gave up more than five percent, triggering a so-called sidecar mechanism -- for the first time in eight months -- that briefly halted some trading. Sydney, Wellington, Manila and Mumbai were also deep in the red, while London and Paris both dropped more than six percent at the open. "We could see a recession happen very quickly in the US, and it could last through the year or so, it could be rather lengthy," said Steve Cochrane, chief Asia-Pacific economist at Moody's Analytics. "If there's a recession in the US, of course, China will feel it as well because demand for its goods will be hit even harder," he added. Concerns about demand saw oil prices sink more than three percent at one point Monday, having dropped around seven percent Friday. Both main contracts are now sitting at their lowest levels since 2021. Copper -- a vital component for energy storage, electric vehicles, solar panels and wind turbines -- also extended losses. - Carnage on Wall Street - The losses followed another day of carnage on Wall Street on Friday, where all three main indexes fell almost six percent. "Over Thursday and Friday, the S&P 500 fell by a massive 10.53 percent in total, making it the fifth-worst two-day performance since World War Two," said analysts at Deutsche Bank. "Indeed, the only other times we've seen a double-digit loss over two sessions were during Covid-19, the height of the (global financial crisis), and Black Monday 1987." That showing came after Federal Reserve boss Jerome Powell said US tariffs will likely cause inflation to rise and growth to slow, and warned of an "elevated" risk of higher unemployment. "Powell's hands are tied," said Stephen Innes at SPI Asset Management. "He's acknowledged the obvious -- that tariffs are inflationary and recessionary -- but he's not signaling a rescue." While Powell has so far refused to announce any rate cuts, markets are betting he will do soon.
South China Morning Post
07-04-2025
- Business
- South China Morning Post
Beijing tells US firms to blame Washington for ‘tariff tensions', hails China prospects
Rallying the likes of Tesla, GE Healthcare and several other American firms just two days after retaliating against the latest US tariffs, Beijing implored the multinationals to 'deliver voices of reason' and 'address root causes'. Advertisement Sunday's round-table chat was the latest high-profile assembly in recent weeks between authorities – as high up as President Xi Jinping – and business leaders, both domestic and international, as China looks to shore up economic growth and ease investor nerves amid an anxiety-inducing trade war that keeps getting worse. Despite the unusual timing, coming at the end of a three-day public holiday , the gathering still featured representatives from more than 20 US firms, including medical-device-maker Medtronic. China's vice-minister of commerce, Ling Ji, chaired Sunday's meeting after US President Donald Trump on Wednesday announced his new 34 per cent 'reciprocal tariff' on Chinese goods. 'China's retaliatory measures defend the interests of all firms – including American companies – while urging US compliance with multilateral trade rules,' said Ling, who is also China's deputy international trade representative. Advertisement 'Tariff tensions originate from Washington, and we encourage US businesses to address root causes, advocate reasonably, and act practically to stabilise global supply chains for mutual benefit.'
Daily Tribune
07-04-2025
- Business
- Daily Tribune
China vows to stay 'safe and promising land' for foreign investment
A top Chinese official has vowed to protect US firms and pledged his country will remain a "promising land" for foreign investment, Beijing said Monday, after it slapped 34 percent tariffs on US imports. China retaliated last week against levies at the same level announced by US President Donald Trump on what he called "liberation day". It also imposed export controls on seven rare earth elements, including gadolinium -- commonly used in magnetic resonance imaging -- and yttrium, which is used in consumer electronics. Vice commerce minister Ling Ji told a panel of US company representatives on Sunday that the tariffs "firmly protect the legitimate rights and interests of enterprises, including American companies", his ministry said. Those levies -- which come into effect on Thursday -- "are aimed at bringing the United States back onto the right track of the multilateral trade system", he told the representatives, including of GE Healthcare and Medtronic. Also present was a representative of electric vehicle giant Tesla, run by close Trump advisor and tech billionaire Elon Musk, who has extensive business interests in China. "The root cause of the tariff issue lies in the United States," Ling said. He urged the firms to "take pragmatic actions to jointly maintain the stability of global supply chains and promote mutual cooperation and win-win outcomes". The United States exported $144.6 billion in goods to China in 2024, much less than the $439.7 billion it imported, Commerce Department data shows. Among its exports, key sectors include electrical and electronic equipment and various fuels, alongside oilseed and grains. Trading floors were overcome by a wave of selling on Monday, in response to the showdown. The selling in Asia was across the board, with no sector unharmed -- tech firms, car makers, banks, casinos and energy firms all felt the pain as investors abandoned riskier assets. Among the biggest losers, Chinese e-commerce titans Alibaba tanked more than 14 percent and rival shed 13 percent, while Japanese tech investment giant SoftBank dived more than 10 percent and Sony gave up 9.6 percent.
Yahoo
07-04-2025
- Business
- Yahoo
China vows to stay 'safe and promising land' for foreign investment
A top Chinese official has vowed to protect US firms and pledged his country will remain a "promising land" for foreign investment, Beijing said Monday, after it slapped 34 percent tariffs on US imports. China retaliated last week against levies at the same level announced by US President Donald Trump on what he called "liberation day". It also imposed export controls on seven rare earth elements, including gadolinium -- commonly used in magnetic resonance imaging -- and yttrium, which is used in consumer electronics. Vice commerce minister Ling Ji told a panel of US company representatives on Sunday that the tariffs "firmly protect the legitimate rights and interests of enterprises, including American companies", his ministry said. Those levies -- which come into effect on Thursday -- "are aimed at bringing the United States back onto the right track of the multilateral trade system", he told the representatives, including of GE Healthcare and Medtronic. Also present was a representative of electric vehicle giant Tesla, run by close Trump advisor and tech billionaire Elon Musk, who has extensive business interests in China. "The root cause of the tariff issue lies in the United States," Ling said. He urged the firms to "take pragmatic actions to jointly maintain the stability of global supply chains and promote mutual cooperation and win-win outcomes". The United States exported $144.6 billion in goods to China in 2024, much less than the $439.7 billion it imported, Commerce Department data shows. Among its exports, key sectors include electrical and electronic equipment and various fuels, alongside oilseed and grains. Trading floors were overcome by a wave of selling on Monday, in response to the showdown. The selling in Asia was across the board, with no sector unharmed -- tech firms, car makers, banks, casinos and energy firms all felt the pain as investors abandoned riskier assets. Among the biggest losers, Chinese e-commerce titans Alibaba tanked more than 14 percent and rival shed 13 percent, while Japanese tech investment giant SoftBank dived more than 10 percent and Sony gave up 9.6 percent. ll-oho/je/dhw
