Political

China leads rebound by Asia shares

Asian stocks bounced back from nine month lows in trade on Friday after the United States slapped tariffs on Chinese imports, a move many investors fear could be the start of a full-scale trade war between the world's two largest economies.

Spread-betters forecast a rise of 0.5-0.6 percent when Britain's FTSE, France's CAC and Germany's DAX open on Friday.

Mainland Chinese shares led Asia's recovery, partly helped by the perception that the tariff measures were already priced in.

MSCI's broadest index of Asia-Pacific shares outside Japan, which dropped 0.5 percent early in the day, had gained 0.6 percent by mid-afternoon.

The Shanghai Composite index was up 0.4 percent. In the morning, it fell 1.6 percent to 2,691, within sight of a January 2016 low of 2,638, then later it was more than 1 percent up.

Japan's Nikkei stock index rose 1.1 percent, recovering from Thursday's three-month low.

Meanwhile, many Economists say the direct impact of the triffs would be contained given the current strength of yhe global economy.

Mr Kozo Koide is the Chief Economist in Tokyo, Japan for Asset Management One.

When economists run various economic models, they get estimates that it will slash U.S. GDP only by 0.1 percentage point. That would be true if this tariffs would be imposed only for a year. But you don't know how long this will continue. Such uncertainties will surely affect companies' spending and hiring plans. Markets are worried the economy may lose momentum earlier than previously thought, he explained

The co-Head of Asia Economic Research in Hong Kong. Frederic Neumann said, he was fairly relaxed about the tariffs and trade dispute.

It's a drag on growth. I don't think it's as disruptive as often described, China's position is strong enough to avoid a hard landing in the current scenario, Neuman said.

It would be recalled that the U.S. tariffs on more than 800 goods from China worth $34 billion took effect on Friday at 0401 GMT

Source: Voice of Nigeria