Some Calm Returns to Asian Markets Even as Trade Tensions Escalate

After three days of turbulence of the global market not seen from the first days of the Covid-19 pandemic, the stocks in Asia resumed a calm measure on Tuesday despite a little arrest in the growing commercial tensions caused by the rates of President Trump.

Before opening the markets in China, the government triggered a series of measures to stabilize the stocks. In turn, the prices of the actions in Hong Kong, one day after falling 13.2 percent, increased by 2 percent. The reference parameters in continental China have passed higher, recovering from great decreases of the day before.

In Japan, Nikkei 225, a key reference point in Japan, earned 6 percent, recovering a part of the losses of the previous days. The tall in sentiment followed the comments made on Monday by the Treasure Secretary Scott Beesent, who said it would soon start the discussions with the Japanese government regarding rates.

The Kospi index has increased in South Korea has increased by about 1.5 percent.

Markets around the world were not dying last week since Mr. Trump of new large rates: a 10 percent basic fee on American imports, as well as significantly higher rates on dozens of other countries. The countries responded with their own rates on US assets or with retaliation threats. China reacted forcefully on Friday, combining a new 34 % rate with one of its own on many American imports.

In the United States on Monday, the S&P 500 decreased by 0.2 percent after the tumultuous trade which at some point attracted the reference point Bears market Territory, or a drop of 20 percent or more from its recent maximums. The Futures S&P, indicating how the markets could perform when they reopen for negotiations on Wednesday in New York, were higher than 1.5 percent.

Wall Street managers and analysts are becoming more and more worried that growing commercial tensions can cause lasting damage to the global economy.

“Fasically this problem is solved, better because some of the negative effects increase cumulatively over time and would be difficult to reverse,” wrote Jamie Dimon, managing director of JpMorgan Chase, in his annual letter to the shareholders on Monday. Some banking economists are already predicting that the economy will slide into recession by the end of the year.

The 10.5 percent decrease in Thursday’s & P 500 and Friday was the worst drop of two days for the index since the beginning of the Pandemia di Coronavirus in 2020.

With the new highest rate rates that come into force on Wednesday, Trump remained unstoppable on his commercial position. On Monday he issued a new ultimatum in China to cancel his retaliation rates in the United States, or face further rates of 50 % starting from Wednesday.

But China has shown Tuesday that it is not ascertained.

Several government departments and companies owned by the government have issued statements and have committed themselves to “maintaining the regular functioning of the capital market”. And the Chinese Popular Bank, the central bank of the country, promised To support the central investments of Huijin, the arm of the Chinese sovereign wealth fund that stated that he was increasing his participation of equity funds.

In addition, seven companies affiliated to the China Merchants Group, a large company owned by the central government that markets Hong Kong, said that it would have accelerated a plan to regain some of its actions, a move that generally raises the prices of the shares.

The moves of what is known as the Chinese “national team” recall the efforts that Beijing has undertaken during a market crisis in 2015.

At the time, the efforts of the Chinese government to support the prices of the shares came after its poorly judged steps to increase and then cool the prices. This time, Beijing’s intervention seems to go down with a strategy of the Chinese leader, Xi Jinping, to present his government as a pillar of constant calm against global economic turbulence unleashed by the rates of Mr. Trump.

Christopher Buckley AND River Akira Davis Contributed relationships.