Trade Concerns Overshadow Positive Economic Indicators

Despite China's impressive economic performance in the first quarter, with GDP growth at 5.4%, retail sales increasing by 5.9%, and industrial production surging 7.7% in March, Asian stock markets experienced a downturn. The persistent trade tensions between the United States and China, highlighted by the U.S. maintaining 145% tariffs on Chinese goods and China halting Boeing parts deliveries, have cast a shadow over the region's financial optimism.

Market Reactions Across Asia

Japan's Nikkei 225 saw a significant drop of 1.52%, while South Korea's Kospi Composite and Hong Kong's Hang Seng fell by 1.05% and 2.63%, respectively. China's Shanghai Composite and Shenzhen Composite also declined by 0.64% and 1.65%. In contrast, Australia's S&P/ASX 200 ended the session unchanged. The dollar weakened against the yen, trading at ¥142.3740.

The Ongoing Trade War Dynamics

The White House's stance that the "ball remains in China's court" regarding tariff negotiations underscores the unresolved tensions. With electronics facing a 20% tariff and Beijing's retaliatory measures, the trade war's impact continues to influence market sentiments and economic forecasts.