Global markets traded modestly lower on Monday as investors awaited word of how China would respond to President Trump’s escalation of a trade war.
Chinese stocks finished more than 1 percent lower, while the rest of the region registered similar drops. European markets opened lower. Futures that track Wall Street’s performance indicated that stocks in the United States would open lower too, the New York Times reports.
China’s currency, the renminbi, weakened against the American dollar.
President Trump on Friday raised tariffs on $200 billion worth of Chinese-made goods. Talks between American and Chinese officials in Washington ended later that day with the two sides still far apart on a number of issues. Markets in the United States fell that day then recovered some ground on the hopes that the trade war could soon end without too much disruption.
According to New York Times, the timing of that end remains uncertain. China reiterated its defiant stance on Monday, as Geng Shuang, a spokesman for China’s Foreign Ministry, reiterated that Beijing would not bend to foreign pressure and a response would come. American officials on Monday were set to release details of their tariff plans, which could give China the information it needs to respond.
In China, the Shanghai Composite Index fell 1.2 percent, while the Shenzhen Composite Index fell 1.1 percent. Hong Kong markets were closed for a holiday.
Japanese shares fell more modestly, with the Nikkei 225 index losing 0.7 percent.
In South Korea, the Kospi index fell 1.4 percent, while Taiwan’s Taiex index fell by a similar amount.
Both the CAC 40 index in France and the Dax in Germany were 0.5 percent lower in early trading, while the FTSE 100 index in London was flat.
Vietnamese stocks expected to decline, hopes rest on banks
In Vietnam, shares may continue declining this week, dragged down by the impact of recent US-China trade talks and a lack of corporate news, analysts said.
The benchmark VN-Index on the Ho Chi Minh Stock Exchange ended last week at 952.55 points, for a total weekly loss of 2.22 per cent.
The HNX-Index on the Hanoi Stock Exchange fell 0.94 per cent last week to end at 105.86 points.
The VN-Index and HNX-Index have lost a total 2.76 per cent and 1.49 per cent so far in May, respectively.
The Vietnamese stock market experienced strong pressure from international markets last week as investors displayed their concern about the escalation of the US-China trade tensions.