Amidst the intensifying tension over U.S. and China’s trade war, the Asian market seems unfazed as Chinese stocks led Asian markets to new heights, Tuesday, despite new threats from President Donald Trump to raise tariffs on imports from the country.
While there is no indication that the Chinese leader, Xi Jinping would skip the G-20 meeting later this month in Japan, U.S.’s Trump warns that Washington would increase tariffs on Chinese goods in case the Shanghai leader fails to do so. Trump also predicted that tariffs would drive China to make a trade deal.
“The China deal is going to work out. You know why? Because of tariffs,” Trump said.
The Shanghai Composite SHCOMP, +2.58% surged 2.6%, and the smaller-cap Shenzhen Composite 399106, +3.71% soared 3.8%, while Hong Kong’s Hang Seng Index HSI, +0.76% gained 0.8%. China stock gains centered on infrastructure names after Beijing reportedly asked local governments to fund new big projects. Shares of China Railway Construction Corp. 1186, +7.23% surged nearly 8%.
Japan’s Nikkei NIK, +0.33% closed up 0.3%, while South Korea’s Kospi 180721, +0.59% advanced 0.7%, and benchmark indexes in Taiwan Y9999, +0.39% and Singapore STI, +0.56% rose while Indonesian stocks JAKIDX, +0.32% finished flat. Australia’s S&P/ASX 200 XJO, +1.59% closed up 1.5%.
Among individual stocks, Japan Steel 5631, +1.89% rose in Tokyo trading, along with Mitsubishi UFJ 8306, +1.47% , while Fast Retailing 9983, -1.72% slid. In Hong Kong, AAC 2018, +2.59% and Sunny Optical 2382, +2.01% rose, and LG Electronics 066570, +6.03% surged in South Korea. BHP BHP, +2.27% and Beach Energy BPT, +1.87% advanced in Australia.
Meanwhile, the U.S. market has seen a slight jump with the Dow Jones industrial average up by 175.01 points at 26,158.95. The S&P 500 index was up 25.39 points at 2,898.73, while the Nasdaq composite was up 132.41 points at 7,874.51.