Stock markets stabilize after tumble over trade dispute

Chinese investors react as they monitor stock prices at a brokerage house in Beijing, Tuesday, May 14, 2019. Shares opened moderately lower in Asia on Tuesday after a dismal day on Wall Street as investors fled uncertainty over the China-U.S. trade standoff. (AP Photo/Andy Wong)
A man sits alone on a bench monitors stock prices at a brokerage house in Beijing, Tuesday, May 14, 2019. Shares opened moderately lower in Asia on Tuesday after a dismal day on Wall Street as investors fled uncertainty over the China-U.S. trade standoff. (AP Photo/Andy Wong)
Chinese investors monitor stock prices at a brokerage house in Beijing, Tuesday, May 14, 2019. Shares opened moderately lower in Asia on Tuesday after a dismal day on Wall Street as investors fled uncertainty over the China-U.S. trade standoff. (AP Photo/Andy Wong)
A man reacts as he monitors stock prices at a brokerage house in Beijing, Tuesday, May 14, 2019. Shares opened moderately lower in Asia on Tuesday after a dismal day on Wall Street as investors fled uncertainty over the China-U.S. trade standoff. (AP Photo/Andy Wong)
A man walks past a bank electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Tuesday, May 14, 2019. Shares opened moderately lower in Asia on Tuesday after a dismal day on Wall Street as investors fled uncertainty over the China-U.S. trade standoff. (AP Photo/Vincent Yu)
People walk past a bank electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Tuesday, May 14, 2019. Shares opened moderately lower in Asia on Tuesday after a dismal day on Wall Street as investors fled uncertainty over the China-U.S. trade standoff. (AP Photo/Vincent Yu)
A woman walks past a bank electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Tuesday, May 14, 2019. Shares opened moderately lower in Asia on Tuesday after a dismal day on Wall Street as investors fled uncertainty over the China-U.S. trade standoff. (AP Photo/Vincent Yu)

BANGKOK — World stock markets turned higher on Tuesday, stabilizing after heavy losses on Wall Street, as investors monitor the escalating dispute between China and the U.S. over trade.

The FTSE 100 in Britain rose 0.9% to 7,230, while France's CAC 40 advanced 1.2% to 5,324. Germany's DAX advanced 0.6% to 11,949. Futures augured an upbeat start on Wall Street, with the contract for the Dow Jones Industrial Average up 0.6% and that for the S&P 500, which on Monday suffered its biggest loss since January, adding 0.7%.

Investors already rattled by mounting tensions between Beijing and Washington got an extra jolt when China announced late Monday that it was raising tariffs on $60 billion of imports from the United States in retaliation for the Trump administration's latest hike in import taxes on Chinese exports.

"A clear hardening of attitudes, with state media blaring that China 'will fight to the end,' has stirred concerns of a protracted and widening trade war," Mizuho Bank said in a commentary.

Trade talks between the U.S. and China concluded Friday with no agreement and with the U.S. increasing import tariffs on $200 billion of Chinese goods to 25% from 10%. Officials also said they were preparing to expand tariffs to cover another $300 billion of goods.

Another sign of investor jitters, the VIX index, which measures how much volatility the market expects in the future, spiked 28.1% on Monday.

Still, since Beijing's tariff increases only take effect on June 1 and those raised by Washington apply only to goods shipped after May 10, which will take a couple weeks or more to reach the U.S., there is still time to find a compromise in the festering dispute over Chinese efforts to gain a lead in advanced technologies through means that the Trump administration says are unfair and violate world trade rules.

In Asia, shares mostly closed lower as traders caught up with the earlier losses on Wall Street.

The Shanghai Composite index slipped 0.2% to 2,883.61 while Japan's Nikkei 225 gave up 0.6% to 21,067.23. The Hang Seng index in Hong Kong, reopening after a market holiday on Monday, sank 1.5% to 28,122.02. The S&P ASX 200 in Australia dropped 0.9% to 6,238.40.

Elsewhere in Asia, South Korea's Kospi climbed 0.2% to 2,082.83 and India's Sensex added 0.6% to 37,318.53. Shares fell in Taiwan and Southeast Asia.

Energy futures recovered, with U.S. crude gaining 63 cents to $61.67 per barrel in electronic trading on the New York Mercantile Exchange. It lost 62 cents, or 1%, to settle at $61.04 per barrel on Monday. Brent crude, the international standard, picked up $1.08 to $71.31 per barrel.

The dollar rose to 109.72 Japanese yen from 109.31 yen on Monday. The euro rose to $1.1233 from $1.1223.

Must Read

Amy Yang wins LPGA Thailand by five strokes

Feb 26, 2017

Amy Yang rarely wavered with a big lead during the final round of the Thailand LPGA tournament,...

Surgeons remove 915 coins swallowed by Thai sea turtle

Mar 6, 2017

Tossing coins in a fountain for luck is a popular superstition, but a similar belief brought misery...

Thailand seizes 422 pieces of smuggled elephant tusks

Mar 7, 2017

Thai authorities have seized 422 pieces of elephant tusks and arrested a Gambian man suspected of...

Thai jungle seen as breeding ground for Indochinese tigers

Mar 28, 2017

Conservationists say they have evidence that the critically endangered Indochinese tiger is...

Thai police arrest Japanese woman wanted for pyramid scheme

Apr 5, 2017

Thai police say they have arrested a Japanese woman wanted for allegedly running a...

About Us

Thailand Tribunal is the country’s next generation of digital news portal, bringing you non-stop news on the happenings in the country and all over the world.

Contact us: sales[at]thailandtribunal.com