Rout in China Stocks Is Poised to Worsen After U.S. Trade Comments
Investors to keep an eye on Chinese tech and telecom stocks, the hardest hit after Trump’s tweets soured trade talks outlook.
(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.
--With assistance from Carolina Wilson and Jeanny Yu.
To contact the reporter on this story: Catherine Larkin in Chicago at clarkin4@bloomberg.net
To contact the editors responsible for this story: Courtney Dentch at cdentch1@bloomberg.net, Tim Smith
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