Yahoo Finance Asian Markets Fall as Trump Says China “Broke the Deal”
Investing.com - Asian markets fell on Thursday in Asia as U.S. President Donald Trump said before crucial trade talks tomorrow that China “broke the deal.”
China’s Shanghai Composite and the Shenzhen Component were down 1.1% and 0.7% respectively by 10:30 PM ET (02:30 GMT). Hong Kong’s Hang Seng Index was down 1.6%.
Although not a major directional driver, data showed this morning that China’s consumer price index in April jumped 2.5% from a year ago, in line with expectations but slightly higher than the 2.3% year-on-year rise in March.
A spike in pork prices (+14.4% year-on-year) contributed to higher food prices, the National Bureau of Statistics data showed.
Japan’s Nikkei 225 was down 1.2%. South Korea’s KOSPI declined 1.2%.
Down under, Australia’s ASX 200 edged up 0.3%.
Trade-related news are expected to dominate headlines for the rest of the week as markets await the outcome of the much anticipated negotiations on Friday.
Overnight, Trump said China "broke the deal" in the ongoing U.S.-China trade talks.
"By the way, you see the tariffs we're doing? Because they broke the deal. They broke the deal," Trump said. "So they're flying in, the vice premier tomorrow is flying in — good man — but they broke the deal. They can't do that, so they'll be paying."
The discussions with China were moving "too slowly" as Beijing tried to re-negotiate, the President claimed. That came as a shock as multiple major newswires that cited insider sources reported as recently as last week that the two sides were moving closer to a trade agreement and that a deal could be signed this Friday.
Trump added that the U.S. "won't back down until China stops cheating our workers and stealing our jobs."
"That's what's going to happen. Otherwise, we don't have to do business with them," he said. "We can make the product right here if we have to — like we used to."
"If we don't make the deal, nothing wrong with taking in over $100 billion a year, $100 billion, we never did that before," he said.
China, for its part, said that Beijing will retaliate if the U.S. follows through with its threat to hike tariffs on $200 billion of Chinese goods.
"The escalation of trade friction is not in the interests of the people of the two countries and the people of the world," the ministry said. "The Chinese side deeply regrets that if the US tariff measures are implemented, China will have to take necessary countermeasures."
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