US-China tensions heat up, Asian stocks fall

Most markets across Asia were in the red in Monday morning trading, after US President Donald Trump reignited the trade war with China by threatening to impose 100% tariffs on goods from the country.

An electronic board displays the KOSPI stock index at Hana Bank in Seoul, South Korea on April 7, 2025. File photo: THX/TTXVN

At the break in China, Hong Kong's Hang Seng Index fell 3.5% to 25,373.43 points, while the Shanghai Composite Index lost 1.3% to 3,846.25 points. Sydney, Singapore, Seoul and Manila markets also fell sharply. Tokyo markets were closed for a holiday.

On October 10, on social media, Mr. Trump said he would impose an additional 100% tax on China and threatened to cancel a meeting with Chinese President Xi Jinping, after China imposed export restrictions on rare earth minerals. The additional US tax, along with export controls on “all critical software,” will take effect from November 1.

Currently, Chinese products face a 30% US tariff, while China's retaliatory tariffs are at 10%.

The flare-up in trade tensions has sent stock markets tumbling, as investors were already concerned about a stock bubble amid the recent rally in technology stocks.

However, the market decline was somewhat slowed by Mr. Trump's more conciliatory tone on October 12.

For its part, China accused the US of acting unfairly, calling the US threat “a typical example of ‘double standards.’” In an online statement, the ministry said that constantly threatening to impose high tariffs is not the right approach when dealing with China.

The announcement comes after months of talks between the two sides to reach a comprehensive trade deal.

Contrary to the downward trend in the region, the Vietnamese market was "green" in this morning's session. Specifically, at 11:00, the VN-Index increased by 2.09 points, or 0.12%, to 1,749.64 points, while the HNX-Index added 0.42 points, or 0.15%, to 274.04 points.

Source: https://baotintuc.vn/thi-truong-tien-te/cang-thang-mytrung-quoc-tang-nhiet-chung-khoan-chau-a-sut-giam-20251013112333081.htm