Shanghai, China – As Wall Street saw a decline in quarterly earnings assessment, Asian-Pacific markets fell mostly on Wednesday amid ongoing tariff concerns. The Nikkei 225 in Japan dropped by 0.3%, while the Kospi in South Korea fell by 0.47% and the Kosdaq by 0.44%. The Hang Seng Index in Hong Kong also experienced a 1.55% decrease, and China’s CSI 300 declined by 0.3%. Despite U.S. tariff threats affecting growth outlook, China exceeded expectations with a 5.4% expansion in the first quarter, as reported by Reuters.
Meanwhile, Australia’s S&P/ASX 200 showed a positive gain of 0.19%. However, investment bank UBS has downgraded China’s GDP forecast to 3.4% for this year and 3% for the next year. This downgrade is attributed to the impact of U.S. tariffs on Chinese goods, expected to contribute to a more than 2 percentage points drag on China’s GDP growth, according to UBS’s chief China economist, Tao Wang.
China recently ordered all airlines to halt deliveries of Boeing jets amidst an escalating tariff war with the U.S. This move is seen as a potential catalyst for negotiations between the two countries. Louis Navellier, founder and chairman of Navellier & Associates, suggests that the pressure from Boeing and the technology industry might lead to a resolution in the trade spat between China and the U.S.
Looking ahead in the U.S. market, stock futures slipped as investors awaited the release of a key retail sales report and more first-quarter earnings. Dow Jones Industrial Average futures dropped by 0.3%, while S&P 500 futures and Nasdaq 100 futures dipped by 0.7% and 1.1%, respectively. In the previous session, the three major averages in the U.S. saw a decline after consecutive winning sessions. The Dow Jones Industrial Average lost 0.38%, the S&P 500 declined by 0.17%, and the Nasdaq Composite ticked down by 0.05%.
With ongoing uncertainties in the global markets, investors continue to monitor the impact of tariffs and trade tensions on economies worldwide. The fluctuation in markets reflects the delicate balance between economic growth and geopolitical challenges, highlighting the interconnectedness of the global financial system.
