Market turmoil spreads to Asia

Asian stock markets slumped Wednesday as jitters spread over Italy's escalating political crisis and renewed US-China...

Posted: May 30, 2018 11:51 AM
Updated: May 30, 2018 11:51 AM

Asian stock markets slumped Wednesday as jitters spread over Italy's escalating political crisis and renewed US-China trade tensions.

Japan's Nikkei and Hong Kong's Hang Seng both fell around 1.5%, while the Shanghai Composite sank more than 2%.

Markets were calmer in morning trading in Europe, with most major indexes posting small gains or losses.

The declines across Asia came after a sell-off Tuesday in Europe and the United States, where the Dow closed down 1.6%.

Traders in Asia said investors were exiting riskier assets such as stocks after political turmoil in Italy sparked fears over the future of the euro and the White House revived plans to slap tariffs on $50 billion worth of Chinese goods.

Italy is headed for new elections after populist politicians failed to form a government, and investors worry the result could throw the European Union into turmoil. They are demanding higher yields to hold Italian government debt.

"This potential crisis is monumental," Stephen Innes, head of Asia-Pacific trading at foreign exchange firm Oanda, said in a note to clients.

Related: Italy crisis rocks markets. Here's why investors are worried

He pointed out that Italy's economy is far bigger than that of Greece, the source of the last eurozone crisis.

Investors in Asia are also worried about President Donald Trump's hardening stance on trade with China. The administration announced Tuesday that it would proceed with its proposal to impose 25% tariffs on $50 billion worth of goods from China and place new limits on Chinese investments in US high-tech industries.

The decision was a surprise, coming less than two weeks after China and the United States said they had agreed to put threats of new tariffs on hold.

China's Commerce Ministry said the Trump administration's latest announcement is "obviously in violation of the consensus" reached by the two countries in recent talks.

Jingyi Pan, a market strategist at broker IG Group, said the move may be interpreted as a negotiating tactic ahead of Commerce Secretary Wilbur Ross' planned visit to China this weekend for more trade talks. But it's still adding to negative sentiment in Asian markets, she added.

The gloomy mood may not continue in US markets later Wednesday, though. Dow futures were indicating slight gains.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 57162

Reported Deaths: 1660
CountyConfirmedDeaths
Hennepin18197820
Ramsey7047261
Dakota4049103
Anoka3410113
Stearns284220
Washington193843
Nobles17496
Olmsted163523
Scott141017
Mower10842
Rice10028
Blue Earth8595
Wright8205
Carver7922
Clay75240
Kandiyohi6771
Sherburne6577
St. Louis45319
Todd4202
Lyon4163
Freeborn3551
Steele3331
Nicollet32013
Benton3103
Watonwan2990
Winona24916
Crow Wing21313
Martin2045
Le Sueur2021
Beltrami2000
Chisago1821
Otter Tail1793
Goodhue1778
Cottonwood1730
Becker1471
Pipestone1439
McLeod1400
Unassigned14040
Polk1353
Itasca13412
Douglas1320
Waseca1300
Pine1280
Carlton1260
Dodge1230
Murray1221
Isanti1100
Chippewa991
Brown852
Faribault840
Meeker832
Morrison821
Wabasha820
Sibley802
Rock750
Koochiching743
Pennington731
Jackson700
Mille Lacs683
Cass622
Fillmore610
Renville605
Lincoln540
Swift521
Grant511
Yellow Medicine490
Roseau460
Pope450
Houston390
Norman370
Hubbard320
Redwood320
Marshall290
Kanabec281
Wilkin283
Aitkin270
Mahnomen241
Wadena230
Big Stone220
Red Lake200
Lake180
Stevens160
Clearwater150
Traverse100
Lac qui Parle60
Kittson30
Cook20
Lake of the Woods10

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 46100

Reported Deaths: 887
CountyConfirmedDeaths
Polk9781203
Woodbury365651
Black Hawk302262
Linn214587
Johnson195915
Dallas179635
Buena Vista178612
Scott161512
Dubuque154929
Marshall139424
Pottawattamie122723
Story111714
Wapello85032
Muscatine83048
Webster7366
Crawford7213
Sioux6022
Cerro Gordo57917
Tama53929
Warren5341
Jasper45825
Wright4441
Plymouth4438
Louisa37814
Dickinson3754
Clinton3213
Washington28810
Hamilton2411
Boone2312
Franklin2256
Bremer1927
Clarke1883
Carroll1821
Emmet1812
Clay1711
Shelby1691
Hardin1660
Marion1550
Allamakee1504
Poweshiek1508
Benton1451
Jackson1411
Des Moines1392
Mahaska13617
Floyd1312
Guthrie1285
Jones1242
Cedar1201
Hancock1172
Butler1152
Buchanan1141
Henry1143
Pocahontas1141
Lyon1060
Madison1052
Clayton993
Cherokee981
Harrison980
Lee973
Taylor930
Humboldt921
Delaware911
Iowa901
Monona900
Winneshiek861
Mills830
Calhoun822
Fayette810
Sac810
Palo Alto800
Kossuth780
Osceola780
Jefferson770
Winnebago770
Mitchell760
Page760
Grundy741
Union721
Monroe677
Worth610
Chickasaw510
Davis501
Lucas504
Howard490
Cass481
Montgomery453
Appanoose433
Greene380
Fremont350
Van Buren331
Keokuk311
Ida290
Audubon281
Decatur220
Adair210
Ringgold211
Wayne181
Adams160
Unassigned00
Rochester
Clear
71° wxIcon
Hi: 73° Lo: 58°
Feels Like: 71°
Mason City
Clear
71° wxIcon
Hi: 74° Lo: 59°
Feels Like: 71°
Albert Lea
Broken Clouds
70° wxIcon
Hi: 71° Lo: 59°
Feels Like: 70°
Austin
Clear
72° wxIcon
Hi: 72° Lo: 59°
Feels Like: 72°
Charles City
Clear
70° wxIcon
Hi: 73° Lo: 59°
Feels Like: 70°
Rain returns for Wednesday
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Sean's Weather 8/5

Image

A closer look a the Graham Park testing site

Image

Temporary rental assistance available in Olmsted County

Image

Gold and Silver Prices Going Up

Image

Memorial Bicycle Ride

Image

MSHSL votes to postpone football and volleyball

Image

Rochester Public Schools survey parent opinions about options

Image

Waterloo hands Rochester 13th straight loss

Image

Mason City Fire Department burn training

Image

Coronavirus impact on the 2020 census

Community Events