Trade Tensions Overshadow Positive Economic Indicators

Despite China reporting robust economic growth with a 5.4% increase in GDP for the first quarter and significant rises in retail sales and industrial production, Asian stock markets experienced a downturn. The shadow of escalating trade tensions with the United States loomed large, with tariffs on Chinese goods remaining a contentious issue.

Market Reactions Across Asia

Japan's Nikkei 225 saw a sharp decline of 1.52%, while South Korea's Kospi Composite and Hong Kong's Hang Seng also fell significantly. China's own markets weren't spared, with the Shanghai and Shenzhen Composites both dropping. Meanwhile, the Australian market remained flat, and the dollar weakened against the yen.

Escalating Trade Measures

Beijing's decision to halt Boeing parts deliveries and the White House's stance on tariffs negotiations indicate that the trade war is far from over. With electronics facing a 20% tariff and other goods subjected to even higher rates, the economic standoff continues to affect global markets.