KLCI down 1.88% after China retaliates against US tariffs

KLCI down 1.88% after China retaliates against US tariffs
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KUALA LUMPUR (April 4): The FBM KLCI fell 34.84 points or 1.88% after China's retaliation against US import tariffs hit Asian stock markets.

Reuters reported that China hit back on Wednesday at US President Donald Trump administration’s plan to slap tariffs on US$60 billion in Chinese goods. It was reported that China retaliated with a list of similar duties on key US imports including soybeans, planes, cars, whiskey and chemicals.

It was reported that China announced it would impose additional tariffs of 25% on 106 US products including soybeans, autos and chemicals. US stock futures and Treasury yields also fell on the news.

At Bursa Malaysia, the KLCI closed at 1,815.94 at 5pm after hitting its intraday low at 1,811.56.

Maxis Bhd, Digi.Com Bhd and Genting Malaysia Bhd were among blue chips which dragged the KLCI lower.

Across Bursa Malaysia, 3.28 billion shares worth RM2.78 billion were traded. Decliners led gainers by 1,085 to 97 respectively. Among Bursa Malaysia indices, the ACE index fell the most at 7.1% followed by the technology gauge, which declined 7.01%.

Areca Capital Sdn Bhd chief executive officer Danny Wong Teck Meng told theedgemarkets.com that the announcement of China's import tariffs on US goods had triggered heavy selling in global stock markets.

“I believe that the market will continue to be volatile until the two countries settle for a negotiation,” Wong said.

Across Asian stock markets, Hong Kong’s Hang Seng was down 2.19% while South Korea's Kospi fell 1.41%. Japan's Nikkei 225 erased losses to close up 0.13%.

Tomorrow (April 5), Hong Kong and Mainland China markets will be closed for the Tomb Sweeping Day or Ching Ming Festival holiday. China markets will remain closed on Friday (April 6) for the festival.