Equity Brief: Asian stocks spooked by Tariff Man again

A summary of the stock market trends & highlights from today's Asian mid-session.

Stock market snapshot as of [02/08/2019 0540 GMT]

  • Ahead of the European opening session, Asian stocks have continued to stage three days of consecutive decline reinforced by U.S. President Trump’s sudden fresh tariff of 10% on US$ 300 billion of Chinese imports to take effect from 01 Sep despite U.S. and China trade officials have scheduled the next trade negotiation talks to take place in early Sep in Washington.
  • As at today’s Asian mid-session, the worst performers are China related plays, together with Japan’s Nikkei 225 that has declined by -2.42% triggered by a stronger JPY and an escalating trade dispute between Japan and South Korea over curbs on Japanese exports of three high-tech materials needed to make memory chips and display panels by South Korean chip-makers. Japan has removed South Korea’s fast-track export status with effect on 28 Aug due to national security reasons as per cited by Japanese government official.
  • So far, there is no official response from the Chinese government on Trump’s latest tariff hike other than China Foreign Minister Wang Yi told reports on the sidelines of an Association of Southeast Nations event in Thailand that the additional tariffs were “not a correct way” to deal with bilateral dispute”.
  • From an intermarket perspective, a break above the key psychological 7.00 level on the USD/CNH (offshore yuan) does not bode well for Asian ex Japan and emerging markets equities in the coming week (click here for more details on our report).
  • The S&P 500 E-mini futures has continued to inch lower in today’s Asia session to print a current intraday low of 2938. European stock indices CFD futures are now playing negative catch-up where both the FTSE 100 and German DAX are down significantly by -1.74% and -1.09% respectively.

Up Next

  • Eurozone Retail Sales for Jun at 0900 GMT where consensus is set at 1.3%
  • U.S. non-farm payrolls for Jul at 1230 GMT where consensus is set at +164K and unemployment rate is expected to remain unchanged at 3.7%.

Corporate Highlights

Macroeconomic Calendar

*Data from Refinitiv. Index names may not reflect tradable instruments and not all markets are available in all regions.


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

StoneX Financial Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.