The big story on Friday was Donald Trump’s threat to impose an additional 100% tariff on all Chinese imports, a move that sent global markets tumbling — with crypto assets hit particularly hard.
Over the weekend, however, the focus shifted as Trump walked back his remarks, softening his tone after Beijing issued firm statements vowing not to relax its rare earth export controls. Some analysts said both sides appear to be posturing ahead of a possible Xi–Trump meeting in the months ahead.
Crypto markets snapped back sharply, brutally whipsawing traders caught off-guard by the reversal. More traditional financial markets followed suit on Monday in Asia, with US equity futures gapping higher and extending gains. Note that US cash bond markets are closed Monday, though stock exchanges remain open.
Gold and silver surged, while Mainland and Hong Kong equities opened lower, reflecting caution around renewed trade risks.
China’s September trade data also landed Monday, offering a measure of resilience:
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Exports rose 8.3% y/y, the fastest pace in six months and well above forecasts.
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Imports also grew faster than expected.
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Iron ore imports hit an all-time monthly high.
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Soybean imports reached a record for September, adding insult to injury to US farmers who’ve not seen any orders from China for their beans
Asia-Pac stocks:
- Japan (Nikkei 225) -1%
- Hong Kong (Hang Seng) -3%
- Shanghai Composite -1.25%
- Australia (S&P/ASX 200) -0.8%
In major FX rates, AUD outperformed. This article was written by Eamonn Sheridan at investinglive.com.
