Strong Economic Data Overshadowed by Trade Tensions

Asian stock markets experienced a downturn in the afternoon session on Wednesday, as the positive impact of China's robust economic figures was 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 in March. Despite these strong indicators, the ongoing trade war continues to cast a shadow over market optimism.

Trade War Escalation

The US maintains 145% tariffs on Chinese goods, with electronics facing a 20% duty. In response, Beijing has halted deliveries of Boeing parts, further intensifying the standoff. The White House has reiterated that the ball is in China's court regarding tariff negotiations.

Market Reactions

Japan's Nikkei 225 fell by 1.52%, South Korea's Kospi Composite lost 1.05%, and Hong Kong's Hang Seng plummeted 2.63%. China's Shanghai Composite dipped 0.64%, and the Shenzhen Composite declined by 1.65%. Australia's S&P/ASX 200 closed flat. The dollar weakened by 0.60% against the yen.