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Asian Stocks Closes Lower as China Imposes New Tariffs

Asian stocks closed the 1st trading day of the quarter on a lower note as markets reversed gains seen earlier in the session. China announced on Monday it implemented tariffs on 128 US imports starting Monday.

Japan’s benchmark Nikkei 225 wiped early gains, closing down 0.31% at 21,388.58. The broader Topix lost 0.44%, with just 5 of its 33 sector indexes holding on to gains by the end of the session.

Meanwhile, South Korea’s Kospi index slid 0.07% to finish at 2,444.16. Declines in the country’s largest shipmakers weighed on the broader index, as index-heavyweight Samsung Electronics dropped 1.38%.

The city skyline view of Shanghai, China at night
China imposed a new tariff on 128 US products.

Despite the losses, gains were seen among THAAD-related stocks. They tend to be sensitive to China-South Korea ties. Lotte Shopping rose 6.61%, Amorepacific jumped 5.05%, and Korean Air Line surged 1.63%. THAAD-related stocks, which were named after the anti-missile system, include an array of retail, airline, and hospitality stocks.

In China, mainland markets were mixed at the end of the session. The Shanghai Composite ended lower by 0.16% at 3,163.86, and the Shenzhen composite gained 0.16% to end at 1,856.66.

The moves also occurred after China on Friday unveiled its pilot plan to spur high-tech companies to issue depositary receipts on the mainland.

MSCI’s broadest index of Asia-Pacific shares minus Japan rose 0.30% to 718.69.

Elsewhere, markets in Australia, Hong Kong, and New Zealand were closed on Monday for the Easter holiday.

MSCI’s world equity index finished up 1.25 last week. However, it lost about 1.5% in the 1st quarter, pushed away from record highs as tensions over global trade intensified. In addition, turmoil in the White House deepened and market-leading technology companies shook on fears of regulation and other issues.

“The market’s biggest fears about escalating trade war and higher US interest rates have tentatively blow over, suggesting investors will shift into bargain-hunting mode,” said Stephen Innes, head of trading at Oanda.

In commodities, benchmark US crude dropped 0.91% to $64.35 a barrel. Trading had stopped for the long Easter weekend. On Thursday, benchmark US crude rose 56 cents to $64.94 a barrel on the New York Mercantile Exchange. Brent crude fell 1.92% to $68.87.

China Implements Tariffs on 128 US Goods, Weighs Asian Stocks

China followed through on a promise to retaliate against US President Donald Trump’s tariffs on imports of Chinese steel and aluminum.

The country imposed new tariffs on 128 US imports worth $3 billion, including fruits and pork.

While the market reaction on Monday appeared composed, global stocks took a beating last month as markets feared the possibility of a trade war.

“Trade tensions are unlikely to cool in the near future, but investors should remember that trade actions typically fall far short of initially announced policies,” said Hannah Anderson, global market strategist at JP Morgan Asset Management.



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