Economic Growth vs. Trade Tensions

Despite China's robust economic indicators, including a 5.4% GDP growth in Q1 and significant increases in retail sales and industrial production, Asian stock markets experienced a downturn. The shadow of the US-China trade war looms large, with high tariffs and halted deliveries exacerbating tensions.

Market Reactions Across Asia

Japan's Nikkei 225 and South Korea's Kospi Composite saw significant losses, while Hong Kong's Hang Seng plummeted over 2.6%. China's own markets weren't spared, with the Shanghai and Shenzhen Composites also dipping. Meanwhile, the Australian market remained flat, and the dollar weakened against the yen.

The Stalemate Continues

With both sides holding firm—China halting Boeing deliveries and the US maintaining tariffs—the resolution to the trade dispute remains uncertain. The White House's statement that the 'ball is in China's court' underscores the ongoing deadlock.