On Tuesday morning (14 October, 10:28 AM, GMT+7, Bangkok time), indices in Asia Pacific traded mixed following U.S. President Donald Trump’s statement regarding tensions with China.
Trump signaled a more conciliatory tone towards Beijing following recent intensification in trade tensions between the world’s two largest economies. In a statement posted on Truth Social Monday, Trump assured, “Don’t worry about China, it will all be fine!”
The U.S. president on Friday unveiled a slate of aggressive trade measures after Beijing expanded its restrictions on critical mineral exports. The White House outlined plans for a sharp 100% tariff on Chinese imports bound for the U.S., alongside sweeping new curbs covering the export of what Trump described as “any and all critical software.”
The developments mark a significant escalation in trade hostilities, prompted by China’s announcement of new curbs on rare earth element exports. These materials play a pivotal role in the technology manufacturing industry. Although Beijing’s restrictions did not explicitly target the U.S., Trump, speaking to reporters, characterized China’s actions as “shocking” and “very, very bad.”
Australia’s ASX 200 climbed by 0.01% to 8,883.9. South Korea’s KOSPI surged by 0.47% to 3,601.45, while Japan’s NIKKEI fell by 1.18% to 47,520.57.
As for stocks in China, Shenzhen’s SZI slumped by 1.01% to 13,098.11. Hong Kong’s HSI contracted by 0.45% to 25,771.69, while Shanghai’s SSEC added 0.09% to 3,893.08.
The U.S. stock markets edged up on Monday as the Dow Jones Industrial Average (DJIA) gained 1.29% to 46,067.58. NASDAQ soared by 2.21% to 22,694.60, and S&P 500 jumped by 1.56% to 6,654.72. VIX plummeted by 12.14% to 19.03.
As for commodities, oil prices settled higher on Monday after reassurances that U.S. President Donald Trump plans to meet Chinese President Xi Jinping later in October, soothing recent trade tensions between the world’s two largest economies. Brent crude futures ended the session 59 cents higher, or 0.9%, at $63.32 a barrel, while U.S. West Texas Intermediate crude rose 59 cents, or 1%, to close at $59.49 a barrel.
This morning, Brent futures increased 13 cents, or 0.21%, to $63.45 a barrel, and the WTI advanced 14 cents, or 0.24%, to $59.63 per barrel.
Meanwhile, gold futures rose by 0.95% to $4,172.2 per Troy ounce.