World stocks mostly fall on possible US-China tariffs

A man walks past an electronic board showing Hong Kong share index outside a local bank in Hong Kong, Friday, Sept. 7, 2018. Asian stocks were mostly lower on Thursday as the U.S. and China moved closer to imposing tariffs on billions of dollars of each other's goods, sounding a call of caution in the markets. (AP Photo/Vincent Yu)
A woman walks by an electronic stock board of a securities firm in Tokyo, Friday, Sept. 7, 2018. Asian stocks were mostly lower on Thursday as the U.S. and China moved closer to imposing tariffs on billions of dollars of each other's goods, sounding a call of caution in the markets. (AP Photo/Koji Sasahara)
People walk by an electronic stock board of a securities firm in Tokyo, Friday, Sept. 7, 2018. Asian stocks were mostly lower on Thursday as the U.S. and China moved closer to imposing tariffs on billions of dollars of each other's goods, sounding a call of caution in the markets. (AP Photo/Koji Sasahara)
A man looks at an electronic stock board of a securities firm in Tokyo, Friday, Sept. 7, 2018. Asian stocks were mostly lower on Thursday as the U.S. and China moved closer to imposing tariffs on billions of dollars of each other's goods, sounding a call of caution in the markets. (AP Photo/Koji Sasahara)
People walk past an electronic board showing Hong Kong share index outside a local bank in Hong Kong, Friday, Sept. 7, 2018. Asian stocks were mostly lower on Thursday as the U.S. and China moved closer to imposing tariffs on billions of dollars of each other's goods, sounding a call of caution in the markets. (AP Photo/Vincent Yu)
A woman walks by an electronic stock board of a securities firm in Tokyo, Friday, Sept. 7, 2018. Asian stocks were mostly lower on Thursday as the U.S. and China moved closer to imposing tariffs on billions of dollars of each other's goods, sounding a call of caution in the markets. (AP Photo/Koji Sasahara)
A man walks past an electronic board showing Hong Kong share index outside a local bank in Hong Kong, Friday, Sept. 7, 2018. Asian stocks were mostly lower on Thursday as the U.S. and China moved closer to imposing tariffs on billions of dollars of each other's goods, sounding a call of caution in the markets. (AP Photo/Vincent Yu)
People stand in front of an electronic stock board of a securities firm in Tokyo, Friday, Sept. 7, 2018. Asian stocks were mostly lower on Thursday as the U.S. and China moved closer to imposing tariffs on billions of dollars of each other's goods, sounding a call of caution in the markets. (AP Photo/Koji Sasahara)

SINGAPORE — Global stock markets mostly fell on Friday as traders mulled over the effects of possible U.S. tariffs on $200 billion in Chinese goods and looked ahead to U.S. jobs data.

KEEPING SCORE: In Europe, France's CAC 40 fell 0.3 percent to 5,230, while the FTSE 100 index of leading British shares gave up 1 percent to 7,249. Germany's DAX fell 0.3 percent to 11,927, after the country's trade surplus dipped to four-year low. U.S. indexes are set for a subdued open. Dow futures dropped 0.2 percent and the broader S&P 500's futures shed 0.1 percent.

ASIA'S DAY: Japan's benchmark Nikkei 225 fell 0.8 percent to 22,307.06 and the Kospi in South Korea dropped 0.3 percent to 2,281.58. Hong Kong's Hang Seng index, which has dropped 18 percent since its peak in late January, was almost flat at 26,973.47. The Shanghai Composite index was 0.4 percent higher at 2,702.30. Australia's S&P/ASX 200 shed 0.3 percent to 6,143.80. Shares were lower in Taiwan and most of Southeast Asia.

US-CHINA TENSIONS: The Trump administration may impose tariffs of up to 25 percent on an additional $200 billion in Chinese goods, after a public comment period ended Thursday. The imports are equal to nearly 40 percent of all the goods China sold the U.S. last year. Doing so would escalate a confrontation between the world's two biggest economies and likely squeeze U.S. companies that import everything from handbags to bicycle tires. China has said that it is ready to retaliate with "necessary countermeasures" if President Donald Trump goes ahead with the tariff hike. Commerce Ministry spokesman Gao Feng said Thursday that the country is confident it can maintain "steady and healthy" economic growth. It has announced a $60 billion list of American products targeted for retaliation. The Chinese government has said it would help local and even foreign businesses in the country mitigate the effects of the trade dispute.

ANALYST'S TAKE: "The market is risk-off and pricing in the effects of new tariffs. It's a done deal as far as investors are concerned," said Francis Tan, investment strategist at UOB Private Bank. "I don't think that China will retaliate with a full-fletched devaluation of the yuan. They will turn to other non-tariff measures," he added.

DATA OUTLOOK: Investors are expecting a string of U.S. releases on Friday, such as the latest unemployment rate. Economists have forecast that employers added 189,000 jobs in August and that the unemployment rate dipped from an already-low 3.9 percent to 3.8 percent. In the coming week, the markets will also be looking out for Chinese data, including the country's year-on-year foreign direct investment and industrial output. Next week's Bank of England and European Central Bank meetings could also affect sentiment.

ENERGY: Benchmark U.S. crude added 12 cents to $67.89 a barrel. The contract dropped 1.4 percent to settle at $67.77 a barrel in New York. Brent crude, used to price international oils, gained 19 cents to $76.69 a barrel. It lost 1 percent to $76.50 a barrel in London on Thursday.

CURRENCIES: The dollar edged up to 110.85 yen from 110.83 yen. The euro strengthened to $1.1611 from $1.1625.

You may also interested in

Indonesia police say policeman killed in Papua...

Nov 15, 2017

Indonesian police say gunmen shot and killed a police officer in the latest attack by separatists...

Bali flights resume, but volcanic ash still...

Nov 30, 2017

Flights trickled out of Bali a day after its airport reopened but the erupting volcano there shut...

Indonesia hard-line Muslims protest ban on...

Jan 12, 2018

Muslim hard-liners have protested in Indonesia's capital against Facebook's blocking of accounts...

Borneo's orangutan population plunged by 100,000...

Feb 15, 2018

The most comprehensive study of Borneo's orangutans estimates their numbers have plummeted by more...

Greenpeace leaves sustainable wood certification...

Mar 27, 2018

Greenpeace withdraws from Forest Stewardship Council, says it is failing to protect natural forests...

What's Trending

About Us

Pioneered by experienced entrepreneurs, bankers and software engineers, BursaKL stand tall to bring you the latest state of business and finance from Malaysia and all over the world.

Popular News