Economy

Asia stocks sink on trade war worries

Asia stocks sink on trade war worries”

The iconic motorcycle company's announcement raised concern that escalating trade threats could lead to similar moves from other companies and dampen USA economic growth.

The US Treasury Department is drafting curbs that would block firms with at least 25 per cent Chinese ownership from buying US companies with 'industrially significant technology, ' a government official briefed on the matter said on Sunday.

Among big USA movers, Intel Corp. fell 3.4 per cent, Visa Inc. fell 3.2 per cent and Boeing Co. fell 2.2 per cent. The S&P technology index fell 2.3 percent, the most among the major S&P 11 sectors.

In a concrete outcome of the tit-for-tat trade blows, U.S. motorbike maker Harley-Davidson said late Monday it planned to shift some manufacturing overseas to avoid retaliatory European tariffs imposed last week.

The U.S. Treasury is due to issue its recommendations on Chinese investment restrictions on Friday.

Harley shares closed down 5.0 percent and analysts cut their profit forecasts on concerns about how quickly the company would be able to adapt to the 25 percent import duties the European Union began charging on June 22. The comments, made at a press briefing with European Commission Vice President Jyrki Katainen, come as both sides prepared to face off against US President Donald Trump's tariff threats. CFIUS reviews-or the threat of reviews-have largely halted Chinese purchases of US semiconductor companies.

Xi was speaking Thursday to the Global CEO Council, a China-organised group of roughly 20 chief executives from mostly Western multinational companies such as Goldman Sachs and Volkswagen, the Journal said.

This is starting to look like a high stakes ping pong match with another CNBC headline saying it all: 'Dow drops more than 300 points as investors brace for further trade actions against China'.

"A trade war means lower global GDP".

On Monday morning, however, Treasury Secretary Steven Mnuchin tweeted that the WSJ report was "fake news" and said the policy being prepared by the Treasury Department "will be out not specific to China, but to all countries that are trying to steal our technology".

Foreign investments already must pass interagency review under the Committee on Foreign Investment in the USA, to see if they violate national security.

Chinese tech stocks are getting whacked on the news.

A bill to make CFIUS reviews even tougher is making its way through Congress.

On Wall Street, the Dow Jones Industrial Average fell 328.09 points, or 1.33 percent, to 24,252.8, the S&P 500 lost 37.81 points, or 1.37 percent, to 2,717.07, and the Nasdaq Composite dropped 160.81 points, or 2.09 percent, to 7,532.01.



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