Asian Stocks Lower on Renewed US-China Trade Tensions

Asian shares were largely lower during the afternoon trade on Thursday during the renewed China-US trade tension. Meanwhile, automakers were also weaker, after US President Donald Trump commanded the Commerce Department to consider an investigation into automobile imports. The probe could bring about new tariffs on foreign vehicles.

On the other hand, China’s Commerce Ministry stated that it hoped the US would push through the promised measures during their trade negotiations last week as soon as possible. However, the Ministry also remarked that the Asian country didn’t give any specific figure over the trade surplus cut.

Japan’s Nikkei 225 was 1.2 percent lower. Meanwhile, the strengthening yen was considered as the catalyst for the selloff of local stocks.

China’s Shanghai Composite and the Shenzhen Component both declined 0.2 percent. Hong Kong’s Hang Seng Index, on the flip side, perked up 0.02 percent.

Aluminum producer United Company Rusal Plc, which is listed in Hong Kong, hit the headlines after the business said that its chief executive Alexandra Bouriko and seven other board members have filed their resignation letters and stepped down from their positions. The company also cautioned investors over debt problems.

Rusal claimed that there’s a chance it would not be able to serve its debts because of US sanctions. The sanctions prevented US-exposed customers to purchase metal from Rusal.

Even though he’s not a directional driver, China’s Premier Li Keqiang stated on Thursday that China backs a unified Europe, adding that there was a “huge potential” for cooperation between Germany and China.

Trump Aims for a “New Structure” over US-China Trade Deal

US President Donald Trump has given some signals over a new direction is US-China trade talks. It also said that any deal would require “a different structure.” This remark has sparked further uncertainty over current discussions.

Trump has described the current negotiations as “too hard to get done” in a tweet earlier on Wednesday. He also mentioned some difficulties like verification. However, he didn’t give any other information regarding his plans for the ongoing discussions.

“Our trade deal with China is moving along nicely, but in the end we will probably have to use a different structure in that this will be too hard to get done and to verify results  after completion,” the president wrote in his tweet.

The statement came in the wake of negotiations between the world’s two largest economies following the fears of a full-blown trade war caused by potential tariffs from both sides. This happened even as tensions seem to be quelled over signs of potential progress.

Both countries have appeared victorious on Monday, though. They also promised to resume the talks following last week’s session in Washington, which resulted to China pledging to import more American energy and agricultural commodities in order to trim the $335 billion annual US goods and services trade deficit with China.

“China unswervingly defends its core interests, and did not make any promise on cutting its trade surplus with the US by a specific figure,” said Gao Feng, who is a spokesman at the Chinese commerce ministry.

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