TOKYO – Asian equities fell Wednesday after a slide on Wall Street amid rising tensions between the United States and the European Union and a weak forecast on global economic growth.
The Japanese Nikkei 225 benchmark lost almost 0.8% in morning trading at 21.635,16. The Australian S & P / ASX 200 slipped by almost 0.1% to 6,217.30. South Korean Kospi lost 0.2% to 2209.21. Hong Kong's Hang Seng lost 0.8% to 29.925.15, while the Shanghai Composite lost almost 0.9% to 3.211.36.
On Wall Street, the S & P 500 index fell by 17.57 points, 0.6%, to 2878.20. The Dow Jones Industrial Average lost 190.44 points, or 0.7%, to 26,150.58. The Nasdaq composite slips 44.61 points, or 0.6%, to 7.909.28. The Russell 2000 small capitalization index gave 19.32 points, equal to 1.2%, or 1.599,68.
Even the European indices closed broadly on the downside, renouncing the initial gains, after the United States threatened to impose $ 11.2 billion of duties on European products, including cheese, wine and helicopters.
President Donald Trump's threat could make investors even more worried about trade disputes that damage a global economy already slowing down at a time when the United States is trying to resolve a trade conflict with China.
The spit has already made a list of more expensive goods for consumers and is weighing on a Chinese economy that is already slowing down. The negotiators met again last week and both sides said they are making progress.
Traders were also disappointed to see that the International Monetary Fund lowered its forecasts for global growth this year. The International Monetary Fund now plans a global growth of 3.3% in 2019, making the weakest year coincide from 2009. The United States has been particularly poor in the relationship, with an expected growth of 2.3%, in decline from 2.9% in 2018.
Investors will have more clues about the Fed's intentions on Wednesday, when the central bank releases a few minutes from its last political meeting. The European Central Bank will also meet on Wednesday.
"Between the spreading of growth and concerns about commercial tension, once again, feelings in Asian markets have once again been weakened," said Jingyi Pan, market strategist at the IG in Singapore.
The U.S. benchmark increased by 11 cents to 64.09 dollars. It fell 0.7% to $ 63.98 a barrel on Tuesday. Brent crude added 4 cents to $ 70.65 a barrel.
CURRENCY: The dollar fell to 111.14 yen from 111.28 yen on Tuesday. The euro fell to $ 1.1257 to $ 1.1277.
Business writer AP Alex Veiga contributed to this report.
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