Asian Markets React to Trade Tensions and Economic Data

Asian stock markets experienced a downturn in the afternoon session on Wednesday, as concerns over escalating trade tensions between the United States and China overshadowed positive economic figures from 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 for March. Despite these strong indicators, the shadow of the US-China trade war looms large, with significant tariffs affecting bilateral trade.

Trade War Escalations

The US has maintained 145% tariffs on Chinese goods, with electronics facing a 20% duty. In response, China has halted deliveries of Boeing parts, further straining relations. The White House has signaled that the next move in tariff negotiations rests with China.

Market Impacts Across Asia

Japan's Nikkei 225 fell by 1.52%, South Korea's Kospi Composite dropped 1.05%, and Hong Kong's Hang Seng saw a significant decline of 2.63%. Meanwhile, China's Shanghai Composite and Shenzhen Composite also experienced losses. Australia's S&P/ASX 200 remained unchanged, and the dollar weakened against the yen.