Economy

Chinese stocks gain, yuan steady despite new tariffs

Chinese stocks gain, yuan steady despite new tariffs”

Finally, the Australian dollar was down 0.18% against the U.S. dollar at A$1.49, while New Zealand's dollar was down 0.15% at NZ$1.58.

President Donald Trump told reporters Sunday (link)that "We can't allow China to rip us off anymore as a country", but said trade negotiations with China were still set to resume this month.

Trading could be subdued as U.S. financial markets are closed for the Labour Day holiday. Hong Kong's Hang Seng gained 0.4% to 25,527.85.

Most Asian markets, meanwhile, fell on Monday. Tokyo and Hong Kong declined.

China has lodged a complaint against the United States at the World Trade Organization over USA import duties, trashing the latest tariff actions as violating the consensus reached by leaders of China and the United States in a meeting in Osaka.

Spot gold was down 0.5% at $1,523.26 per ounce at 0406 GMT, but still not far off last week's $1,554.56, its highest level since April 2013.

The latest round of tariffs that the United States and China imposed on each other went into effect Sunday - a round that came as concerns about slowing global growth are building and fear of recession stalks several major economies. -Chinese talks this month aimed at ending a tariff war was shaken by a Bloomberg News report that trade envoys were struggling to agree on a schedule.

China's Shanghai Composite increased by 1.31% to 2,924.11, while the tech-heavy Shenzhen Composite jumped 2.26% higher to 1,614.92 following a better-than-expected reading on the Caixin manufacturing industry purchasing managers' index.

Sterling fell almost 0.8 percent versus the dollar in late London trading.

In retaliation, China started to impose additional tariffs on some of the U.S. goods on a $75 billion target list.

The MSCI index of Asia-Pacific shares outside Japan loses almost 0.60% whereas Japan's NIKKEI is on the run-up to 0.18% gain amid broader risk-on.

China responded by charging taxes of 10 percent and 5 percent on a list of American goods.

But there is no indication either side is willing to break a deadlock in talks by offering concessions. China's started the morning marginally higher, up 0.18% to 2,891 while the was down 0.35% to 9,365.

Stronger infrastructure spending may be helping manufacturers to some degree, but given continued domestic and export weakness "we think authorities will have little choice but to roll out further policy easing measures in the coming months", Capital Economics said in a note. China revealed a drop in its official purchasing managers' index (PMI) on Saturday due to weaker demand for its products in the USA and globally. Many U.S. companies have warned that they will need to pass on the costs of the tariffs to consumers. It fell 1.6 per cent in August as the trade war intensified. The euro remained nearly flat at $1.09905, a short distance from the two-year low of $1.0963 on Friday.

ENERGY: Benchmark U.S. crude lost 23 cents to $54.86 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.61 on Monday to close at $55.10. Brent crude, used to price global oils, retreated 33 cents to $58.93 per barrel in London.

CURRENCY: The dollar gained to 106.28 yen from Friday's 106.24 yen. The euro was unchanged at $1.0991.



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