Asian stocks driven by widespread sales in South Korea and Japan fell on Friday, where the latest customs duties imposed by US President Donald Trump have raised the fear of the global trade war.
Trump has announced 25 percent of customs duties on car imports next week, which has provoked criticism from politicians and officials in the automotive industry worldwide, along with international auto companies’ warnings about high prices. The expansion of the global trade war has been shaking in the market after Trump returns to the White House, where the shares of global auto manufacturers are particularly affected, according to Reuters.
The Japanese “Nikki” index fell 2 percent, with a significant decline in shares of companies such as “Toyota” and “Honda”, a record index in South Korea was down 2 percent. The auto industry is a pillar in the economy of the two countries.
Futures contracts of the German “Docks” index, which have car manufacturers, have declined by 0.2 percent, Futures for American markets have not seen any great changes.
“US customs functions on car imports are not a big surprise, as it has been hurt for some time,” said HSBC Bank chief Asian economist Farid Newman.
He said: «Some of the producers can adjust supply chains and product sites to reduce these effects. Meanwhile, they are able to download some prices to American users, as customs functions affect almost all producers. ”
Some major auto manufacturers such as “Volvo”, “Volvo”, “Mercedes -Bengz” and “Volvo” and “Audi” of “Volvo” and “Audi” have announced that they will be transferred to other countries. Ferrari, which manufactures all its cars in Italy, has announced that it will increase its prices to 10 percent.
Trump said he was ready to reduce customs duties on China if the Hong Singh index in Hong Kong had declined by 0.6 per cent to sell the application with the “Tech Tok” application application.
Interest is now focused on mutual customs duties to be announced by the United States on April 2. Trump suggested that these policies may not be equal customs duties he promised to impose. “Talking about customs duties can lead to new round contraction … Here they will try to understand their consequences, but they often conclude that customs functions will negatively affect economic growth and inflation,” said theory.
Inflation test
In currency markets, the US dollar settled before issuing the expected inflation report on the day after the expected inflation report. American personal consumption costs, the preferred criteria of the “Federal Reserve”, recovering in consumer expenses and raising the prices of annual primary personal consumption costs to 2.7 %.
The US dollar is heading towards a quarterly decrease, as it is concerned about the impact of customs duties on American economic growth in its shadows. The euro fell to $ 1.07887, but from January to March to 4 percent.
The Japanese Yen has also increased to 150.675 yen, and the deaths of traders on the Bank of Japan are likely to increase interest rates again to make a profit of about 4 per cent in the quarter.
On Friday, data showed the prices of basic consumer prices in Tokyo in March, which is higher than the central bank’s target, which is driven by high prices. This has led to continuous market expectations to raise interest rates in the near future.
