Asian markets bounce back amid US trade threats to China
Asian stocks bounced back in morning trading, a day after an escalation in the trade war between the US and China sparked a sharp sell-off.
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China’s CSI 300 index ticked up just over one per cent in early trading, after dropping almost six per cent yesterday. Hong Kong’s Hang Seng index also lifted after suffering its largest fall in over a month.
The recovery came after US President Donald Trump threatened to ramp up tariffs on Chinese goods yesterday, rattling global markets and sparking a sell-off.
In a series of tweets, Trump said tariffs on $200bn (£153bn) worth of goods from China would be increased to 25 per cent on Friday, up from the current rate of 10 per cent.
But a spokesperson for the Chinese foreign ministry insisted trade negotiations will still go ahead this week.
Nikkei 225, the Japanese benchmark, dropped more than one per cent today, following a 10-day break.
Read more: Global markets in tailspin after Trump threatens huge China tariff rise
“China’s decision to attend this week's round of talks in the US, despite Trump’s threats, has somewhat eased the risk-off bias during the latter part of the day,” said Konstantinos Anthis, head of research at ADSS.