Key points
- Markets have recovered some of the losses suffered after Trump’s tariffs announcement
- China has pointedly not flown to US in a bid to pare back levies of up to 145pc imposed on its goods
- Macro data in China and US will weaken further: Zhiwei Zhang
ISLAMABAD: Stocks started limply Wednesday as investors struggled to match Wall Street’s rally, with data showing Chinese factory activity contracted this month at its fastest pace for nearly two years as Donald Trump’s trade war kicked in.
While markets have recovered some of the losses suffered after the US president’s “Liberation Day” tariffs announcement on April 2, uncertainty still rules as countries look to cut deals to avert the worst of Washington’s ire, AFP reported.
China has pointedly not flown to the United States in a bid to pare back the levies of up to 145 percent imposed on its goods, instead hitting back with 125 per cent tolls of its own.
Trade war
But the effect of the measures began to shine through in April, with data Wednesday showing manufacturing activity contracted at its fastest pace since July 2023 — a month after expanding at its quickest rate for 12 months, according to AFP.
That came after Chinese exports soared more than 12 per cent last month as businesses rushed to get ahead of the swingeing tariffs.
AFP cited Zhiwei Zhang, president and chief economist at Pinpoint Asset Management as saying “The weak manufacturing PMI in April is driven by the trade war.” “The macro data in China and the US will weaken further… as the trade policy uncertainty delays business decisions,” he said.
Shares fell in Hong Kong and Shanghai, while they were also off in Seoul, Wellington and Jakarta.
Sydney, Singapore, Taipei and Manila also edged up.
