Asian Markets React to Trade Tensions

Asian stock markets experienced a downturn in the afternoon session on Wednesday, overshadowing China's impressive economic figures. The persistent trade tensions between China and the United States have left investors wary, despite signs of robust economic growth in China.

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 in March. These figures highlight the resilience of China's economy, yet the shadow of trade disputes looms large.

Trade War Escalations

The United States maintains 145% tariffs on Chinese goods, with electronics facing a 20% duty. In response, China has halted deliveries of Boeing parts, escalating tensions further. The White House has indicated that the ball is in China's court regarding tariff negotiations.

Market Reactions Across Asia

Japan's Nikkei 225 fell by 1.52%, while South Korea's Kospi Composite lost 1.05%. Hong Kong's Hang Seng saw a significant drop of 2.63%, and China's Shanghai Composite and Shenzhen Composite also declined. Meanwhile, Australia's S&P/ASX 200 ended the session flat.