Trade War Escalates: US Stocks Mostly Decline, While Chinese Tech Stocks Drive Gains in Asia
πΊπΈ S&P 500 Index: -0.95% π
πΊπΈ Nasdaq Index: -1.36% π
πͺπΊ Stoxx 600 Index: -0.38% π
π―π΅ Nikkei 225 Index: -0.72% π
ππ° Hang Seng Index: 1.16% π
π¨π³ CSI 300 Index: 1.50% π
πΈπ¬ Straits Times Index: 0.81% π
Market Summary:
US markets broadly declined on Friday, with the S&P 500 and Nasdaq Composite falling 1.0% and 1.4%, respectively. This came after President Donald Trump announced plans to impose reciprocal tariffs on multiple countries next week, following weaker-than-expected employment and consumer confidence data.
US January nonfarm payrolls increased by 143,000, the highest in nearly two years but still below expectations. The unemployment rate fell to 4.0%, beating the expected 4.1%, reaching its lowest level since May. Average hourly earnings rose 0.5% month-over-month, exceeding the forecasted 0.3%.
US consumer confidence index for February unexpectedly fell to 67.8, a seven-month low, as inflation expectations surged. Households worry that Trump's tariff threats might come too late to avoid damaging their purchasing power.
Asian stock markets closed higher, with the Hang Seng and CSI 300 indices rising 1.2% and 1.5%, respectively. Hong Kong's benchmark index recorded its best week in four months, driven by gains in tech stocks.
China's inflation picked up after Lunar New Year spending, rising 0.5% year-over-year, slightly above the expected 0.4%. However, producer price deflation persisted, declining 2.3% year-over-year, reflecting mixed consumer spending and weak factory activity.
Upcoming Events:
Monday: China to release new yuan loans.
Wednesday: US to release CPI (monthly & yearly), core CPI (monthly).
Thursday: US to release PPI (monthly), core PPI (monthly), jobless claims. UK to release quarterly GDP. EU to release monthly industrial production.
By week's end: EU to release preliminary quarterly GDP. US to release retail sales, core retail sales (monthly), industrial production (monthly).
Things to Know Today:
1. President Trump plans to announce reciprocal tariffs on multiple countries by Monday or Tuesday, marking his latest move to reshape global trade in favor of the US.
2. Trump stated that Nippon Steel's $14.9 billion acquisition of $U.S. Steel(X)$ will be structured as an investment rather than a takeover. However, sources confirm that the Japanese steelmaker has not withdrawn its bid.
3. The Trump administration has temporarily halted plans to revoke tariff exemptions on Chinese low-cost products, giving the Commerce Department time to refine the order.
4. China's top economic planning agency announced reductions in subsidies for renewable energy projects, following a surge in solar and wind power installations.
5. Chinese automaker Great Wall Motor $Great Wall Motor Company Limited(601633)$ and major telecom providers are integrating DeepSeek's AI models into their services, joining a growing number of firms leveraging the startup's innovation and rising influence.
Key Takeaways:
Friday's labor market report initially set the tone, but discussions on tariffs quickly overshadowed it, highlighting how sensitive markets remain to Trump's statements and policies.
Comments
Here are some news articles related to the US and China for February 10, 2025:
Market Highlights - This article provides a summary of the market highlights for February 10, 2025. It mentions that US markets declined on Friday due to President Donald Trump's plans to impose reciprocal tariffs on multiple countries. It also highlights weaker-than-expected employment and consumer confidence data in the US.
ASX Market Close: Index inches lower as investors digest Trumpβs tariff plans - This article discusses the Australian share market, which closed marginally lower on Monday. Investor concerns around President Trump's decision to impose tariffs on aluminum and steel imports eased in afternoon trading. The impact of Trump's tariffs on China's steel exports to the US is mentioned, as well as the Australian market's reaction to the news.
ASX Slips, US Tariffs Weigh On Miners; JB Hi-Fi Down 5pc - This article reports on the Australian share market closing marginally lower on February 10. It mentions that investor angst about Trump's tariff plans initially weighed on the market but later eased as the impact on China's steel exports to the US was considered. The article also discusses the Australian dollar's reaction to the news.
GLOBAL MARKETS-Asia shares hesitant, dollar firms as US tariffs loom - This article provides an overview of Asian stock markets, where shares were hesitant and the dollar firmed as US tariffs on steel and aluminum were looming.
GLOBAL MARKETS-Asia shares slip, dollar firm as tariffs loom - This article discusses the slip in Asian shares and the firming of the dollar as tariffs on steel and aluminum were looming.
Apologies, but there is no specific news related to Chinese Tech stocks or the trade war escalation in Asia at the moment. You can check the stock quote page for more relevant information.
Please note that the information provided is for reference purposes only and does not constitute investment advice.