The state of the global economy was from being ideal even before the coronavirus pandemic. Moreover, the pandemic could jeopardize the future of the trade deal and the U.S.-China relations in general. The trade war between the U.S. and China dates back to 2018. In January, the U.S. and China signed a partial trade deal. Another disagreement between the largest economies will create even more problems for the global economy. This news affected the stocks.
Moreover, apart from coronavirus, there are other issues as well. For example, the situation in Hong Kong.
It is worth mentioning that, U.S. President Donald Trump plans to make an announcement regarding the administration’s response to China’s actions. According to Trump, he would make this announcement by the end of the week. According to the information, the U.S. was considering sanctions on Chinese firms as well as officials over the situation in Hong Kong.
Largest economics and stocks in Asia
The largest economies in the world must try to avoid confrontation as pandemic created many issues for the global economy and there is no need to add other problems. The U.S. has the largest economy and second place belongs to China.
On May 27, investors analyzed the potential impact of rising tensions between the countries.
Mainland Chinese stocks saw losses as the Shanghai Composite dropped 0.34% to about 2,836.80. In the meantime, the Shenzhen Composite fell 0.855% to around 1,774.22.
In Japan, the Nikkei 225 gained 0.75% to close at 21,419.23 as shares of the robot market Fanuc soared 2.18%. At the same time, the Topix index rose 0.96% to end its trading day at 1,549.47.
Also, South Korea’s Kospi index closed slightly higher at 2,031.20.
Furthermore, Australia’s S&P/ASX 200 slightly fell to finish its trading day at 5,775.
The governments of both countries should work together to find the best solution as soon as possible.