Asian Markets React to Trade Tensions

Asian stock markets experienced a downturn in the afternoon session on Wednesday, as escalating trade tensions between China and the United States overshadowed positive economic data from China.

China's Economic Performance

Despite the trade war, China reported a 5.4% GDP growth in the first quarter, with retail sales increasing by 5.9% and industrial production surging 7.7% in March. However, the impact of U.S. tariffs, including a 145% duty on Chinese goods and a 20% tariff on electronics, continues to weigh on the markets.

Escalating Trade Disputes

Beijing has further intensified tensions by stopping deliveries of Boeing parts, while the White House maintains that the ball is in China's court regarding tariff negotiations.

Market Reactions Across Asia

Japan's Nikkei 225 fell by 1.52%, South Korea's Kospi Composite dropped 1.05%, and Hong Kong's Hang Seng plunged 2.63%. Meanwhile, China's Shanghai Composite and Shenzhen Composite saw declines of 0.64% and 1.65%, respectively. Australia's S&P/ASX 200 ended the session unchanged.

The dollar also weakened against the yen, trading 0.60% lower at ¥142.3740.