What’s behind the stock market swingspublished at 04:10 British Summer Time
Annabelle Liang
Business reporter, Singapore
Just a day ago, most stock markets across the Asia-Pacific region were soaring.
This morning, they’re seeing losses, with the exception of Taiwan, which has continued to make gains.
With little in the way of developments on tariff negotiations, investors are “speculation driven,” says Dan Wang from the Eurasia Group consultancy.
“The day before markets were up… [it is] probably going to be like this for a few days,” she adds.
Olivier d’Assier, from investment management solutions firm SimCorp, says it’s uncertainty that’s driving the moves.
“No deals have been signed,
and the relationship between the world’s largest and second largest economies
is irreparably broken,” d’Assier says.
“This means ongoing economic uncertainty, especially
for the global supply chains that go through Asia.”
Many Asian investors were “breathing a sigh of relief” after higher tariffs were paused, says Nick Marro from the Economist Intelligence Unit.
“But they know the story isn’t over. They know that there’s a very high risk that they could wake up one day and these tariff fears are reactivated. That is going to keep people very anxious for quite some time,” Marro adds.
