JAKARTA (TheInsiderstories) – Asian shares, including shares on the Indonesian Stock Exchange, plunge on Wed. 7 on fears of U.S – Chinese trade tensions.
The Jakarta Composite Index (JCI) closed down 2.028 per cent at 6,362.975, while MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.65 per cent, and Japan’s Nikkei retreated 0.77 per cent.
Australian stocks fell 1 per cent, Hong Kong’s Hang Seng slipped 1.1 per cent and China’s blue-chip CSI300 index lost 0.4 per cent.
Asian markets were mostly lower after an unsettled day of trade today, a day which saw the resignation of White House economic advisor Gary Cohn had resigned.
Later in the day, House Speaker Paul Ryan’s office issued a statement saying he is “extremely worried” about the consequences of a global trade war and urged the White House “to not advance with this plan.”
Trump took to Twitter to defend his plan to raise tariffs on imported steel and aluminum, which have riled trading partners and already sparked talk of possible retaliation. Trump said that he “will be making a decision soon” on replacing Cohn.
Trump highlighted trade deficits with Canada and Mexico, and he said tariffs “will only come off if” the three countries sign a new free-trade agreement.
Markets are looking ahead to Friday’s release of U.S employment data. The consensus forecast is for the number of new jobs created last month to hold steady at 200,000 with hourly earnings up 0.2 per cent.