Markets shrug as US, China exchange blows in rising trade war
Live MintNew York: It could’ve been worse. It’s that there are several reasons investors kept their cool: “The market had already largely priced in this round of tariffs,” said Shahab Jalinoos, Credit Suisse Group AG’s global head of FX trading strategy. “The market had anticipated the US would impose additional tariffs by the end of the month,” said Hiroaki Mino, a senior strategist at Mizuho Securities Co. in Tokyo. “Trade frictions remain as a weight on the equity market, but the market is in the middle of digesting trade concerns and increasing expectations over Japanese corporate earnings.” South Korean equities were modestly higher as President Moon Jae-in arrived in Pyongyang for talks with North Korean leader Kim Jong Un. “As we start to hit levels where they can’t reciprocate in terms of tariffs, then they can turn to other measures to counteract this move from the US and one could be to allow the currency to depreciate further and possibly faster.” Plans to send Vice-Premier Liu He to Washington for talks are being reviewed, the South China Morning Post reported, citing an unidentified government official in Beijing.