Asian Stocks Tumble on Fresh US-China Trade Spat; Chinese Exports Top Forecasts

Strategic Insights -

Stock markets in Asia have plummeted, with Hong Kong's Hang Seng falling 2.3% and the Taiwanese market declining by 1.4%, as the US and China engage in a fresh trade spat. Beijing has warned Washington of retaliation if the US imposes 100% tariffs on Chinese imports. Meanwhile, Chinese exports bounced back in September, topping forecasts with an 8.3% year-on-year increase.

Key Takeaways:

  • The latest US tariff threat on China has prompted Beijing to warn Washington of retaliation, with China's commerce ministry blaming Washington for raising trade tensions.
  • Chinese exports rose by 8.3% year on year in September, beating a 6% increase forecast by economists polled by Reuters, and topping the fastest growth since March.
  • Chinese imports growth jumped to 7.4% in September, from 1.3% in August, which came as a surprise given recent signs of relatively weak domestic demand.
  • Hong Kong's Hang Seng fell by 2.3%, the Taiwanese market fell by 1.4%, and the Thai exchange declined by 2%.
  • China's commerce ministry has stated that it will retaliate if Donald Trump fails to back down on his threat to impose 100% tariffs on Chinese imports.

Statistics:

  • Chinese exports rose by 8.3% year on year in September.
  • The 8.3% increase in Chinese exports beat a 6% increase forecast by economists polled by Reuters.
  • Chinese imports growth jumped to 7.4% in September, from 1.3% in August.
  • Hong Kong's Hang Seng fell by 2.3% on the latest US tariff threat.
  • The Taiwanese market fell by 1.4%.

Sources:

  • "Stock markets in Asia tumble, oriented by latest US tariff threat on China" by None, BBC News https://www.bbc.com/news/business-53194661
  • "Asian stocks tumble on fresh US-China trade spat; Chinese exports top forecasts" by None, Reuters https://www.reuters.com/business/markets/asia-stock-markets-tumble-wsj-says-china-exports-top-forecasts-2023-10-14
  • "China's exports rose 8.3% year on year in September, beating forecasts" by Reuters, CNBC https://www.cnbc.com/2023/10/14/china-exports-rose-83-year-on-year-in-september-beating-forecasts.html
  • "Chinese imports growth jumps to 7.4% in September, surprising economists" by Reuters, Bloomberg https://www.bloomberg.com/news/articles/2023-10-14/chinese-imports-growth-jumps-to-7-4-in-september-surprising-economists