Gold Silver Reports (GSR) – BlackRock Inc.’s head of China equities, Helen Zhu, is keeping a close eye on U.S. trade relations as equity markets across Asia contend with the consequences of President Donald Trump’s protectionist proposals.
An impending announcement following an investigation by the U.S. Trade Representative’s office into China’s intellectual property practices, one that may lead to the imposition of tariffs on a wide range of Chinese imports, is her main concern. The Section 301 act is expected to have a “more significant impact” on both U.S. and China macroeconomics, she said.
Equity markets across Asia have had a tumultuous week amid the departure of Gary Cohn from the White House and the rise of trade hawks. After Trump’s announcement on proposed steel and aluminum imports last week, Hong Kong’s benchmark gauge slumped 1.5 percent and China’s Shanghai Composite Index slipped 0.6 percent. Cohn’s resignation sent those indexes down 1 percent and 0.6 percent respectively on Wednesday
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“Markets are likely to remain volatile, with the investment community navigating expectations of rising interest rates, U.S. trade and tax policies, jitters over where oil price is heading, and digesting all that alongside an assortment of macroeconomic data,” said Christina Woon, who is part of a team that manages an Asian equities fund at Aberdeen Standard Investments. – Neal Bhai Reports India
