Connect with us

Local markets in Asia retreat as US President Trump talks up revised trade war

Published

 on 

PHOTO: Hong Kong stock market - China Daily

Steep losses are the order of the day as local markets follow the lead from a sell off in New York after US President Trump foreshadowed a new round of trade sanctions on China. The US President and his Secretary of State Mike Pompeo have openly accused the Chinese government that the Covid-19 started in a lab in Wuhan, and that those responsible would be held to account.

Yesterday, the Secretary of State ramped up White House administration claims that China mounted efforts to hide the extent of the coronavirus spread, including concealing the severity of the situation, while stockpiling medical supplies.

In the wake of threats of economic retaliation, and their impact on US indices, Asian markets have already suffered steep losses today.

The claims have overshadowed better news indicating a further “levelling of the curve” of infections and deaths from Covid-19 in the US and around the world.

All three main indices on Wall Street tanked between 2.6 – 3.2%, having previously enjoyed their best month in decades in April. Hong Kong led this morning’s selloff, dropping more than 3%, while Seoul, Taipei, Singapore, Manila and Jakarta were all down more than 2%. However, Sydney edged up slightly.

President Trump is threatening to lump new tariffs on China over its handling of the virus outbreak, claiming he had seen evidence linking a Wuhan lab to the contagion. He did not made the contents of the report open to the media or public.

Analysts warned that after a strong rebound in April, fuelled by hopes that the worst of the disease has passed, equities could suffer a tumultuous May as corporate earnings and other indicators reveal the extent of the damage inflicted on the US economy.

Meanwhile the US economy is tanking and millions of Americans have already lost their jobs because of the Covid-19 crisis. Economists also fear another wave of losses on the markets and further pressure on the US dollar following the biggest bailout of the economy in history by the US Federal Reserve.

The threat of another long-winded trade war between the two economic superpowers is sparking further fears whilst the world economy is teetering on a major recession.

Oil prices dropped again after surging last week as top producers began to ease up on production following a deal agreed last month to slash output by 10 million barrels a day.

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

If you have story ideas, a restaurant to review, an event to cover or an issue to discuss, contact The Thaiger editorial staff.

Follow Thaiger by email:

Thailand11 hours ago

Thailand News Today | Thais more relaxed about Covid-19

Bangkok11 hours ago

‘Win’ motorbike taxi drivers protest against GrabBike in Bangkok, Thailand

World11 hours ago

China not cod-ing about its zero Covid policy as it tests fish

Travel11 hours ago

Affordable but stylish hotels in Koh Samui for your next holiday

Thailand12 hours ago

Female soldier seeks help after being abused by senator’s wife

Crime12 hours ago

2 fake monks make up to 40k baht per day scamming villagers in northern Thailand

Join the conversation on the Thaiger Talk forums today!
Crime13 hours ago

Man stabs wife’s secret lover to death in rice paddy in central Thailand

Thailand13 hours ago

Thailand movie legend Sombat Metanee has died, aged 85

Crime14 hours ago

Teen soldier murders cousin for allegedly raping his mother

Video15 hours ago

Thaiger Unfiltered

World15 hours ago

Monkeypox victims told to avoid animals after pet dog is infected

Thailand16 hours ago

Elephant rips mahout’s body in half in southern Thailand

Thailand17 hours ago

2 men on a motorcycle rob a gas station in Chon Buri

Thailand17 hours ago

PM Prayut suggests studying Buddhism to cope with rising electricity bills in Thailand

Thailand17 hours ago

Indian man arrested for smuggling 17 live animals out of Thailand

Thailand11 months ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand1 year ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism1 year ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket1 year ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism1 year ago

Phuket Thai food treats you need to try | VIDEO

Thailand1 year ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism1 year ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending