Stock markets across Asia, inclusive of Vietnam slumped again on Wednesday as investors get increasingly nervous about a potential US-China trade showdown.
Japan’s Nikkei Index (N225) dropped for the second straight day, falling more than 1.5% in early trading, while Hong Kong’s Hang Seng Index (HSI) and the Shanghai Composite Index (SHCOMP) both opened around 1% lower after closing slightly higher the previous day. CNN reports.
Wednesday’s slide comes on the eve of trade talks in Washington between China and the United States, which have been clouded by the Trump administration’s renewed threat to increase tariffs on Chinese goods.
A delegation led by China’s top trade negotiator, Liu He, will head to the United States for talks on Thursday, a day later than originally planned and just days after President Trump said he would raise tariffs on $200 billion of Chinese exports. US Trade Representative Robert Lighthizer confirmed the duty increases on Monday.
“With the trade talks restarting…we will need to see concrete progress and quickly in order to lift Trump’s threat,” said Jeffrey Halley, senior market analyst at Oanda. “Until then, it’s hard to see the monsoon clouds hanging over Asia’s regional markets clearing.”
In Vietnam, the benchmark VN-Index on the Ho Chi Minh Stock Exchange (HoSE) on Tuesday inched down 0.04 per cent to end at 957.56 points.
The VN-Index has totaled a four-day decline of 2.25 per cent since May 2. The Vietnam News Agency reported.
According to analysts, any hawkish statements made by the US would make China turn more dovish, leading to more easing on its monetary policies to boost the local business community.
However, investors on the Vietnamese market remained cautious as they were unsure what results would come from this week’s trade talks.
As investors were unwilling to trade stocks, the VN-Index had an early peak before falling to negative territory at the end of the morning session.