Fears of a trade war between the world’s two largest economies jolted China’s markets on Friday, with the country’s main stock indexes tumbling the most in six weeks, while bond yields fell as investors rushed into less risky assets.
But in contrast to stock market ructions, the country’s currency markets remained quiet, with analysts expecting that any Chinese response to U.S. trade actions is unlikely to include changes in its foreign exchange policy.
China shares fell sharply after Beijing unveiled plans for tariffs on up to $3 billion of U.S. imports in retaliation to U.S. duties on Chinese steel and aluminium products went into effect on Friday.
President Donald Trump also signed a presidential memorandum on Thursday that could impose tariffs on up to $60 billion of imports from China, although the measures have a 30-day consultation period.
The Shanghai Composite index closed down 3.6 percent at 3,152.76 points, its lowest close since Feb 9.
China’s blue-chip CSI300 index was down 2.9 percent at 3,891.47, its lowest close since Feb. 12.
Source : Reuters