Perfect storm rattles investors, sending Asian markets down

The Associated Press

A currency trader walks by a screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room in Seoul on Tuesday.

AFP-JijiHONG KONG (AFP-Jiji) — Markets retreated in Asia on Tuesday as uncertainty over the China-U.S. trade talks was compounded by increasing tensions in Hong Kong and an economic crisis in Argentina.

Investor confidence has been knocked this month by a perfect storm of negative issues, only slightly offset by hopes for further central bank easing measures as the global outlook dims.

Comments from U.S. President Donald Trump throwing next month’s planned trade talks into doubt, as well as his decision to unveil more tariffs on Chinese goods, sent equities tumbling last week and analysts at Goldman Sachs have said they do not expect a deal before the 2020 U.S. presidential election.

The Wall Street titan also warned the standoff could hit U.S. growth, while Treasury yields plunged in a sign of growing concerns for the country’s economic health.

All three main indexes on Wall Street ended more than 1 percent lower on Monday, while there were also losses in Europe and gold — a go-to asset in times of turmoil — climbed back above $1,500 to sit around six-year highs.

Increasing unrest in Hong Kong was also moving into global investors’ view, as protests extend into a third month, with the city’s airport — a major world transport hub — canceling all flights in and out on Monday evening as thousands of demonstrators descended.

The demonstrations are raising pressure on Chief Executive Carrie Lam and led Beijing to warn of “terrorism emerging.”

Stephen Innes, managing partner at VM Markets, said: “Dropping the ‘T’ word is particularly disturbing as it does suggest a more aggressive mainland response, which triggered a wave of risk aversion across global markets.”

Hong Kong fell 2 percent in the afternoon while Shanghai ended down 0.6 percent.Speech

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