The trade war between the U.S. and China is one most serious threat to the global economy. At a time when the global economy is slowing down, the trade dispute is further escalating the situation. The trade war started in 2018. However, no one knows when it will end. This might happen in several weeks or months.
At the moment, both sides are unable to agree. The trade war creates additional problems for the stock markets in U.S. Asia and other parts of the world. The ongoing dispute is a big problem for the stability of stock markets.
The U.S., as well as China, imposed tariffs on various products. The latest round of tariffs started several days ago. The U.S. imposed tariffs on Chinese products worth $300 billion. China retaliated with tariffs on about $75 billion worth of U.S. products.
However, on Thursday, China’s Commerce Ministry made an announcement which might have a positive impact on the stock markets. According to this statement, China’s Vice Premier and chief trade negotiator Liu He spoke with the U.S. representatives. Both sides agreed to meet in Washington D.C. next month. The exact date of the meeting remains unknown.
Asian Stock market news
Most of the Asian stocks increased on Thursday. Japan’s Nikkei 225 rose by 2.3%. Another Asian stock index, a South Korean Kospi, increased by 1%.
The Nikkei Asia 300 index rose by 0.74% and is close to 1,251.48.
Chinese stocks also benefited from this news. The Shanghai Composite Index rose 2% and reached more than 3,000 points. This happened for the first time in two months.
The stocks of the Chinese banks also increased on September 5. China Construction Bank’s shares rose by 1.7%. Another bank Industrial & Commercial Bank of China’s share increased by 1.4%. Both of these banks are listed on the Hong Kong Stock Exchange.
Nevertheless, some of the companies are still struggling to cope with problems. One of them is Cathay Pacific Airways. On Wednesday airline announced that Chairman John Slosar is going to retire. Three weeks ago the CEO Rupert Hogg left the company. Cathay Pacific’s shares fell by 3.6%.