Trade Concerns Overshadow Economic Growth

Asian stock markets experienced a downturn during Wednesday's afternoon session, as the positive economic indicators from China were overshadowed by escalating trade tensions with the United States.

China's Economic Performance

China reported a 5.4% growth in GDP for the first quarter, alongside a 5.9% increase in retail sales and a 7.7% surge in industrial production for March. Despite these strong figures, the ongoing trade war continues to cast a shadow over the region's economic outlook.

Impact of Trade Tensions

The U.S. maintains 145% tariffs on Chinese goods, with electronics facing a 20% duty. In response, Beijing has escalated tensions by halting deliveries of Boeing parts, while the White House emphasizes that the next move in tariff negotiations lies with China.

Market Reactions

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