Rout in China Stocks Is Poised to Worsen After U.S. Trade Comments
(Bloomberg) -- China stocks are poised to extend their slump after President Donald Trump’s top trade negotiator said the U.S. plans to raise tariffs on Chinese goods on Friday.
The comments from Robert Lighthizer caused the Xtrackers Harvest CSI China A-shares exchange-traded fund to fall as much as 1.6 percent in extended trading in New York. That’s on top of a 5.1 percent slide during the regular session. The $6.3 billion iShares China Large-Cap ETF sank as much as 1 percent, adding to a 2.6 percent drop in regular trading.
Investors will keep an eye on Chinese tech and telecom stocks after they were among the hardest hit Monday as Trump’s initial tweets soured the outlook for trade talks. Apple Inc. suppliers and ZTE Corp. may see further weakness. Other stocks to watch include pork producer WH Group, which generates more than half its revenue in the U.S., airlines and Chinese exporters of household goods.
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