JKB Financial Services Ltd.

As on : 28-Feb-2025

Market Commentary - Foreign Markets
28-Feb-2025 15:18

Asian stocks plunge, China barometer down 1.98%

Asian stocks plummeted on Friday as traders grappled with underwhelming Nvidia Corp. results and U.S. President Donald Trump's new tariff threats.

China vowed to take all necessary countermeasures and defend its legitimate rights and interests after Trump said he would impose an additional 10 percent tariff on Chinese imports, intensifying a brewing trade war between the world's two largest economies.

The additional tariff will come into effect on Tuesday alongside sweeping 25 percent levies on Canadian and Mexican imports.

Traders also awaited the release of the Federal Reserve's preferred inflation gauge, the PCE price index, later in the day for additional clues on the Fed's rate trajectory in 2025.

The dollar held gains from Thursday as concerns over a potential global trade war heightened.

Treasuries held steady in Asian trade after selling slightly at the long end of the curve Thursday. Gold dipped but was on track for a 2 percent monthly gain.

Oil prices headed for their first monthly drop since November on concerns that the U.S. trade war may hurt global growth, worsen inflation and possibly spark recessions in some countries.

China's Shanghai Composite index dipped 1.98 percent to 3,320.90 and Hong Kong's Hang Seng plummeted 3.28 percent to 22,941.32 on trade war fears.

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