Investing.com - Asian stocks were mixed in afternoon trade on Tuesday as traders awaited Beijing’s response to an announcement made by the Trump’s administration on Monday that the U.S. would put 10% tariffs on $200 billion in Chinese goods. The yuan and the dollar traded slightly lower following the news.
Trump, in a statement, said that the tariffs would rise to 25% in January 2019, adding that "if China takes retaliatory action against our farmers or other industries, we will immediately pursue phase three, which is tariffs on approximately $267 billion of additional imports."
According to reports, the U.S. removed about 300 goods from a previously proposed list of affected products, including smart watches, some chemicals, along with some other products.
Markets are now likely to shift focus towards Beijing’s response to the development, according to analysts.
The South China Morning Post newspaper reported, citing an unidentified source in Beijing, that China is now unlikely to send a delegation to the U.S. next week for fresh talks as previously planned.
“China may be limited in its ability to impose similar tariffs in volume terms, but it can still aim to disrupt the US supply chain with those tech exports an obvious target and the cancelation of trade talks is also likely to dampen the mood,” Rodrigo Catril, a senior foreign-exchange strategist at the National Australia Bank, wrote in a morning note.
China’s Shanghai Composite traded 0.1% higher by 1:20AM ET (05:20 GMT), while the Shenzhen Component slipped 0.5%.
Hong Kong’s Hang Seng Index on the other hand slid 0.8%.
China’s hotpot-specialized company Haidilao International Holding Ltd. raised $963 million in its Hong Kong initial public offering (IPO), Reuters reported on Tuesday citing three people close to the deal.
Haidilao priced its shares at the indicated top range of HK$17.8 (US$2.27). Its shares are expected to begin trading on the Hong Kong stock exchange on Sep 26.
The company said last week that it was planning to raise $1 billion with the Hong Kong IPO with a price range of HK$14.8 to HK$17.8 per share.
Elsewhere, Japan’s Nikkei 225 resumed trading after being closed Monday for a public holiday, and traded 1.5% higher as it played catch up.
Meanwhile, South Korea’s KOSPI gained 0.2% as the country’s President Moon Jae-in headed to Pyongyang on Tuesday for a landmark visit to rescue stalled nuclear talks between the U.S. and North Korea.
Leaders from South and North Korea would feature a joint press appearance on Wednesday, reports suggested.
“I will have candid talks with North Korean leader Kim Jong Un to find common ground between the U.S. demand to denuclearize and the North Korean demand to end their hostile relations,” Moon said at a meeting on Monday. “What I am trying to achieve is peace. Not a temporary change that can be swayed by international conditions, but an irreversible and permanent peace.”