Tuesday, 11 September 2018

Markets rise, trade war impact on China "not significant"

Markets were mostly higher on Monday.

The S&P 500 rose 0.2 percent, the STOXX Europe 600 rose 0.4 percent and the Nikkei 225 rose 0.3 percent.

The Greater China markets, however, suffered losses, with the Hang Seng down 1.6 percent and the Shanghai Composite down 1.2 percent.

However, while China is mostly seen to be adversely affected by the ongoing trade conflict with the US, former People's Bank of China governor Zhou Xiaochuan thinks the impact on China will not be very large.

"We used a mathematical model to calculate the negative impact of the trade war. It is not very large, it is not significant. It is less than half a percent (of an) impact to the Chinese economy," said Zhou.

Also, Eric Fishwick, head of economic research at CLSA, said the trade conflict could push China to shore up both its economy and its geopolitical positioning towards winning even more global clout.

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