Asia markets slump as the effect of tariffs continues

Stocks in Asia slipped on Wednesday as the trade talks between the two economic giants, China, and the U.S. heightened causing stateside shares to fall Tuesday night.

On Wednesday morning, Mainland Chinese shares remained mixed. The Shanghai Composite dropped 0.1% while the Shenzhen component gained 0.59%. On the other hand, the Shenzhen composite climbed 0.767%.

Japan’s Nikkei 225 went down by 1.52%. SoftBank Group and Fanuc also suffered losses as their shares went down. The Topix index closed at a low of 1.64%.

South Korea’s Kospi closed the morning session at a low of 0.14%. Samsung Electronics shares went down with over 0.5% while Hong Kong’s Hang Seng also posted a decline of about 0.6%.

Majority of trade markets experienced low trading with Australia’s ASX 200 dropping by 0.39%.

Overnight, the DJIA posted its all-time loss since January 3. It lost 473.39 points ending the day at 25965.09. Dow’s lowest trading point was a 648.77 for the day. S&P 500 also declined by 1.65% closing at 2,884.05 on the day. The Nasdaq Composite closed at 7,963.76 losing 1.96%.

The Cboe Volatility Index commonly known as VIX or “fear gauge,” which measures the 30-day implied volatility of the S&P 500 set a new high of 21.09 on Tuesday. This happens to be its highest level since January 22 this year.

By yesterday, the U.S. dollar index that tracks the greenback vs. a basket of other currencies closed at 97.452. It rose from a level below 97.5.

The Japanese yen, which is the third most traded currency in the world, had an exchange value of 109.98 against the dollar. This was an improvement compared to its previous level of above 110.5. The Australian dollar traded at $0.7022 compared to the previous trading price of $0.704 recorded yesterday.

During the Asian trading hours, the prices of oil increased. Brent crude futures which are considered the international benchmark saw an increase of0.52% to $70.24 for one barrel. U.S crude futures sold one barrel at $61.87, an increase of 0.77%.