[SINGAPORE] Asia-Pacific markets were down as trading opened on Monday (Oct 13) following the latest salvo in the trade war between the US and China.
Singapore’s Straits Times Index fell around 1 per cent as at 9.48 am, while Hong Kong’s Hang Seng Index slumped 2.4 per cent at the open before last declining to trade about 2 per cent down. In mainland China, the Shanghai Stock Exchange Composite Index plummeted 3.3 per cent as at 9.45 am, while the CSI300 tumbled 4.5 per cent.
South Korea’s Kospi was down as much as 1.5 per cent as at 9.35 am in the country before paring some losses to be 1.2 per cent lower as at 10.15 am. Australia’s ASX 200 fell 0.6 per cent as at 11.15 am Sydney time.
Markets in Japan are closed due to a holiday.
US President Donald Trump on Oct 11 said that he would impose a fresh 100 per cent tariff on China, on top of existing levies, and export controls on “any and all critical software” starting from Nov 1. This came after an Oct 10 threat of trade action against China in response to “hostile” export controls Beijing placed on rare-earth minerals.
Beijing on Oct 12 said it will retaliate if Trump does not back down, according to state news agency Xinhua.
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Trump’s planned tariffs will see import taxes on Chinese goods rise to 130 per cent from 30 per cent, slightly under the 145 per cent level imposed earlier this year that was later reduced.
Trump later posted a statement on his social media platform Truth Social that hinted Chinese President Xi Jinping might have a way to back down and suggested that a full trade war would hurt China.
Citi analysts on Monday suggested that stock volatility should be lower than during the US reciprocal tariffs in the second quarter of 2025 “because the new tariff only applies to exporters directly exporting to the US from China”.
However, they said they were “unsure” on how long such volatility could last.
