World stock markets fell sharply Friday after U.S. President Donald Trump said he was prepared to put new tariffs on all Chinese imports, escalating the rhetoric in a trade war that could hit global economic growth.
People cross the road in front of an electronic board showing Hong Kong share index outside a bank in Hong Kong, Friday, July 20, 2018. Asian markets wobbled on Friday on signs that China and the U.S. were readying for the imposition of more tariffs on one another. (AP Photo/Kin Cheung)
KEEPING SCORE: From being up slightly earlier in the day, European indexes were trading lower. Germany's DAX fell 0.5 percent to 12,622 while France's CAC 40 dropped 0.7 percent at 5,377. Britain's FTSE 100 fell 0.3 percent to 7,661. U.S. indexes were poised to open lower, with S&P 500 futures down 0.2 percent and Dow futures 0.4 percent lower.
TRUMP TALK: Trump told the TV channel CNBC he was ready to exchange tariffs with China until all of China's exports to the U.S. — worth over $500 billion a year — are hit. "I'm ready to go to 500," he said. Asked if he would do it even at a cost of a stock market drop, he said: "If it does it does."
People cross the road in front of an electronic board showing Hong Kong share index outside a bank in Hong Kong, Friday, July 20, 2018. Asian markets wobbled on Friday on signs that China and the U.S. were readying for the imposition of more tariffs on one another. (AP Photo/Kin Cheung)
The comments come as the U.S. government is also considering taxing auto imports. Critics lined up this week to urge the administration to reject the tariffs, arguing they would raise car prices, squeeze automakers by increasing the cost of imported components and invite retaliation from trading partners — and allies — like the European Union and Canada.
ASIA'S DAY: Earlier, before Trump's comments were aired, most Asian markets finished higher. Japan's Nikkei 225 bucked the regional trend, losing 0.3 percent to 22,697.88. South Korea's Kospi added 0.3 percent to 2,289.19. Hong Kong's Hang Seng gained 0.8 percent to 28,224.48. The Shanghai Composite Index rebounded 2.1 percent to 2,829.27. Australia's S&P-ASX 200 increased 0.4 percent to 6,285.90.
People cross the road in front of an electronic board showing Hong Kong share index outside a bank in Hong Kong, Friday, July 20, 2018. Asian markets wobbled on Friday on signs that China and the U.S. were readying for the imposition of more tariffs on one another. (AP Photo/Kin Cheung)
YUAN DECLINES: The People's Bank of China set the Chinese currency's central parity rate to 0.9 percent weaker against the dollar on Friday. If the yuan continues to depreciate, goods exported to China will become more expensive to consumers there. Chinese exports would also be relatively cheaper, possibly balancing out suggested increases in tariffs by the Trump Administration.
ANALYST'S TAKE: "One theory is that the PBOC is depreciating the yuan because it has not enough ammunition to fight a dollar-for-dollar increase in tariffs. The markets are very risk-off. There is a loss in confidence right now," said Francis Tan, an economist at UOB Bank.
CURRENCIES: The U.S. dollar was trading at 112.45 yen, roughly unchanged from Thursday. The euro rose to $1.1651 from $1.1644.
People cross the road in front of an electronic board showing Hong Kong share index outside a bank in Hong Kong, Friday, July 20, 2018. Asian markets wobbled on Friday on signs that China and the U.S. were readying for the imposition of more tariffs on one another. (AP Photo/Kin Cheung)
OIL: Benchmark U.S. crude added 8 cents to $69.54 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, gained 6 cents to at $72.64.
JAKARTA, Indonesia (AP) — Chinese Foreign Minister Wang Yi attacked the United States for earlier blocking United Nations resolutions calling for a cease-fire in Gaza after a meeting with his counterpart in Indonesia.
The Chinese and Indonesian foreign ministers reiterated their countries' calls for an immediate and lasting cease-fire in Gaza after a meeting in Jakarta on Thursday, condemning the humanitarian costs of Israel's ongoing war against Hamas.
The U.S., together with Egypt and Qatar, brokered a brief cease-fire earlier in the war that included some swaps of hostages taken by Hamas and other militant groups in return for Palestinian prisoners held by Israel, and has sought to bring about a new deal.
But the U.S. vetoed a number of proposed U.N. Security Council cease-fire resolutions because they didn’t tie the calls directly to the release of Israel hostages or condemn Hamas’ attack that prompted the war before allowing a resolution to a pass with an abstention in late March.
The meeting took place on the second day of a six-day tour during which Chinese Foreign Minister Wang Yi will also visit Papua New Guinea and Cambodia.
Indonesia's Minister of Foreign Affairs Retno Marsudi told reporters that the two countries share the same view about the importance of a cease-fire and of resolving the Palestinian problem through a two-state solution.
Indonesia, the world's most populous Muslim-majority country, has long been a strong supporter of the Palestinians and does not recognize Israel.
“I am sure that China would use its influence to prevent escalation,” Marsudi said, adding that China and Indonesia "would also fully support Palestine’s membership in the U.N.”
Wang blamed the United States for holding up cease-fire resolutions at the U.N.
“The conflict in Gaza has lasted for half a year and caused a rare humanitarian tragedy in the 21st century. The United Nations Security Council responded to the call of the international community and continued to review the resolution draft on the cease-fire in Gaza, but it was repeatedly vetoed by the United States,” Wang told reporters.
American officials have argued that the cease-fire and hostage releases are linked, while Russia, China and many other council members favored unconditional calls for a cease-fire. China and Russia also vetoed one U.S.-backed cease-fire resolution, saying it was not strong enough.
Referring to the resolution that was approved by the Security Council in March, Wang said: “This time, the U.S. did not dare to stand in opposition to international morality and chose to abstain. However, the U.S. claimed that this resolution was not binding," Wang said. “In the eyes of the United States, international law seems to be a tool that can be used whenever it finds useful and discarded if it does not want to use it.”
The two ministers also discussed their countries' economic relationship and the South China Sea.
China is Indonesia’s largest trading partner, with the trade volume reaching more than $127 billion. China is also one of Indonesia's largest foreign investors, with investment flows of more than $7.4 billion in 2023.
Later Thursday, Wang also met Indonesian President Joko Widodo and president-elect Prabowo Subianto, who is currently defense minister.
Indonesian President-elect and current Defense Minister Prabowo Subianto, left, greets Chinese Foreign Minister Wang Yi in Jakarta, Indonesia, Thursday, April 18, 2024. The Chinese and Indonesian foreign ministers called for an immediate and lasting cease-fire in Gaza after a meeting in Jakarta on Thursday, condemning the humanitarian costs of the ongoing war that has killed tens of thousands of Palestinians. (AP Photo/Achmad Ibrahim)
Indonesian President-elect and current Defense Minister Prabowo Subianto, left, stands next to Chinese Foreign Minister Wang Yi as Wang signs a guest book in Jakarta, Indonesia, Thursday, April 18, 2024. (AP Photo/Achmad Ibrahim/Pool)
In this photo provided by the Indonesian Presidential Palace, Chinese Foreign Minister Wang Yi, left, talks with Indonesia President Joko Widodo during a meeting at the palace in Jakarta, Indonesia, Thursday, April 18, 2024. The Chinese and Indonesian foreign ministers called for an immediate and lasting cease-fire in Gaza after a meeting in Jakarta on Thursday, condemning the humanitarian costs of Israel's ongoing war against Hamas. (Vico/Indonesian Presidential Palace via AP)
In this photo provided by the Indonesian Presidential Palace, Chinese Foreign Minister Wang Yi , left, shakes hands with Indonesia President Joko Widodo during a meeting at the palace in Jakarta, Indonesia, Thursday, April 18, 2024. The Chinese and Indonesian foreign ministers called for an immediate and lasting cease-fire in Gaza after a meeting in Jakarta on Thursday, condemning the humanitarian costs of Israel's ongoing war against Hamas. (Vico/Indonesian Presidential Palace via AP)
Indonesian Foreign Minister Retno Marsudi gestures as she speaks during a bilateral meeting with Chinese Foreign Minister Wang Yi in Jakarta, Indonesia, Thursday, April 18, 2024. The Chinese and Indonesian foreign ministers called for an immediate and lasting cease-fire in Gaza after a meeting in Jakarta on Thursday, condemning the humanitarian costs of the ongoing war that has killed tens of thousands of Palestinians. (Yasuyoshi Chiba/Pool Photo via AP)
Chinese Foreign Minister Wang Yi arrives for a bilateral meeting with Indonesian Foreign Minister Retno Marsudi in Jakarta, Indonesia, Thursday, April 18, 2024. (Willy Kurniawan/Pool Photo via AP)
Indonesian Foreign Minister Retno Marsudi, right, shakes hands with Chinese Foreign Minister Wang Yi during their bilateral meeting in Jakarta, Indonesia, Thursday, April 18, 2024. (Yasuyoshi Chiba/Pool Photo via AP)
Chinese Foreign Minister Wang Yi gestures as he speaks during his bilateral meeting with Indonesian Foreign Minister Retno Marsudi in Jakarta, Indonesia, Thursday, April 18, 2024. (Yasuyoshi Chiba/Pool Photo via AP)
Indonesian Foreign Minister Retno Marsudi, left, speaks during their bilateral meeting with Chinese Foreign Minister Wang Yi, right, in Jakarta, Indonesia, Thursday, April 18, 2024. (Yasuyoshi Chiba/Pool Photo via AP)
Chinese Foreign Minister Wang Yi, second right, speaks during a bilateral meeting with Indonesian Foreign Minister Retno Marsudi, bottom second left, in Jakarta, Indonesia, Thursday, April 18, 2024. (Willy Kurniawan/Pool Photo via AP)
Chinese Foreign Minister Wang Yi, right, walks with Indonesian Foreign Minister Retno Marsudi during their bilateral meeting in Jakarta, Indonesia, Thursday, April 18, 2024. (Willy Kurniawan/Pool Photo via AP)
