Renewed jitters over China-US trade tensions pull world shares lower
[October 14, 2025] TOKYO
(AP) — Shares fell Tuesday in European and most Asian markets as new
Chinese sanctions against the U.S. subsidiaries of a major South Korean
shipbuilder shook a fragile sense of calm over trade tensions with
Washington.
France's CAC 40 declined 0.8% in early trading to 7,873.25, while the
German DAX lost nearly 0.9% to 24,181.83. Britain's FTSE 100 shed 0.2%
to 9,426.92.
The future for the S&P 500 lost 0.8% while that for the Dow Jones
Industrial Average was down 0.5%. On Monday, the S&P 500 jumped 1.6% to
recover more than half its drop from Friday. The Dow Jones Industrial
Average surged 1.3% and the Nasdaq composite gained 2.2%.
Investors will be watching for comments by U.S. Federal Reserve chair
Jerome Powell to a meeting later Tuesday of the National Association for
Business Economics.
During Tuesday trading, Japan’s benchmark Nikkei 225 dropped 2.6% to
finish at 46,847.32. The slide reversed a rally last week in Tokyo after
conservative lawmaker Sanae Takaichi was chosen to lead the country's
ruling Liberal Democratic Party.
The subsequent collapse of the LDP's 26-year-old coalition with the
Buddhist-backed Komeito has cast doubt over whether Takaichi will become
Japan's first female prime minister and added to political uncertainty.
The renewed sense of unease over the state of China-U.S. trade tensions
pulled benchmarks in Hong Kong and Shanghai lower.
Hong Kong's Hang Seng lost 1.7% to 25,441.35, while the Shanghai
Composite shed 0.6% to 3,865.23.
Markets had calmed Monday after President Donald Trump wrote on his
Truth Social media platform Sunday, “Don’t worry about China. " On
Friday, Trump helped spur a sell-off after he threatened to hike tariffs
on China by 100% in reaction to Beijing's latest controls on exports of
rare earths.
[to top of second column] |
Currency traders work near a screen showing the Korea Composite
Stock Price Index (KOSPI), left, and the foreign exchange rate
between U.S. dollar and South Korean won at the foreign exchange
dealing room of the Hana Bank headquarters in Seoul, South Korea,
Tuesday, Oct. 14, 2025. (AP Photo/Ahn Young-joon)
On Tuesday,
China’s Commerce Ministry said it was banning dealings by Chinese
companies with five subsidiaries of South Korean shipbuilder Hanwha
Ocean, swiping at Trump’s efforts to rebuild the industry in
America.
South Korea and the U.S. have been building closer ties in
shipbuilding in response to China’s dominance as the world’s largest
shipbuilder. Hanwha acquired the Philly Shipyard in Pennsylvania
last year and has contracts with the U.S. Navy to perform
maintenance, repair and overhaul work for U.S. naval vessels.
Hanwha Ocean's shares fell 5.8% in Seoul on Tuesday and the
benchmark Kospi lost 0.6% to 3,561.81.
Australia's S&P/ASX 200 rose nearly 0.2% to 8,899.40.
In energy trading, benchmark U.S. crude lost $1.21 to $58.28 a
barrel. Brent crude, the international standard, fell $1.27 to
$62.05 a barrel.
In currency trading, the U.S. dollar fell to 152.03 Japanese yen
from 152.29 yen. The euro cost $1.1557, down from $1.1569.
All contents © copyright 2025 Associated Press. All rights reserved |
