All major Asian stock indexes were trading lower on Tuesday, following a down day on Wall Street that was prompted by turbulence in both the U.S. and Chinese markets. The Nikkei 225 was down 0.26 percent as of 1:47 p.m. HK/SIN, and Australia’s ASX 200 was down 0.53 percent. China’s two benchmark indexes, the Shanghai Composite and the Shenzhen Composite, were down 0.17 percent and 0.66 percent respectively. Hong Kong’s Hang Seng Index was down 0.26 percent.
On Wall Street on Monday, the Nasdaq ended down 1.11 percent, while the Dow Jones Industrial Average closed 0.84 percent lower. The S&P 500 was down 0.78 percent. The declines on Wall Street were prompted by concerns that the slowing Chinese economy would directly impact the U.S. economy.
On Tuesday, additional Chinese provinces cut their annual growth targets for 2019, a sign that analysts are concerned about weakening domestic demand and the ongoing trade war between China and the United States. At the moment, 23 out of China’s 31 provinces have cut their growth targets for 2019, and five provinces have kept their outlook unchanged. Only 17 cut their forecasts in 2018. Only one province, Hubei, raised its target for 2019.
Contributing to the trade tensions between the two economic superpowers was an indictment of Huawei’s CFO, Meng Wanzhou, which was officially handed down on Monday. The U.S. Justice Department also announced charges against the Chinese telecommunications company for stealing trade secrets from T-Mobile. Analysts question whether the indictment and subsequent charges were strategically timed to coincide with this week’s trade talks between Chinese and American trade officials, or whether the Justice Department was acting independently, on its own, unrelated timeline.
Currency Movements
On the currency markets, the dollar eased against the yen, as investors flocked to the safe-haven currency. The greenback was down 0.04 percent against the yen, to 109.30, though it remained mostly higher against its other trading partners. The dollar index remained unchanged at 95.74 .DXY.