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Japans Nikkei average fell more than 2 percent on Wednesday morning

2018-07-11 07:39 am | Resource: NEWS | No Views : 184

Japan's Nikkei fell more than 2 percent on Wednesday morning after the United States said it would impose customs duties on more than $ 200 billion worth of Chinese goods, hurting shippers and car makers in particular.

The Nikkei was down 2.1 percent at 21,744.25 in mid-morning trading, down from a two-and-a-half-day high the previous day.

Senior administration officials said on Tuesday that Washington had decided to impose additional fees after negotiations to resolve the trade dispute failed to reach an agreement.

US officials have released a list of thousands of Chinese goods that the US administration wants to hit with tariffs, including hundreds of food products, as well as tobacco, chemicals, coal, steel and aluminum.

It also includes consumer goods ranging from tires, furniture, wood products, handbags and travel bags to dog and cat food, baseball gloves, carpets, doors, bicycles, skates, golf bags, toilet paper and beauty products.

"Most of us did not expect the United States to unveil a new list soon, so the prices of the US stock market were not," said Shoujo Maikawa, global market strategist at JPMorgan Asset Management. "Now the market is cautious about what China will do next." Stocks are expected to be volatile at the moment.

S & P 500 futures and the Dow declined 0.8 percent and 0.95 percent respectively, pointing to an open decline on Wall Street later in the day.

On Wednesday, Chinese equities opened sharply lower, dampening sentiment in companies whose business is heavily dependent on Chinese demand such as shippers, construction machinery makers and machine tool makers.

The shipping sector fell 2.8 percent and was the worst performer on the plane, with Mitsui down 3.7 percent, Kawasaki Keisin down 2.0 percent and Nippon Yusin 2.7 percent.

Komatsu fell 2.8 per cent and Hitachi Construction fell 4.5 per cent.

Machinery makers fell, with Ocoma falling 4.4 per cent, machinery grinding down 3.9 per cent, and Fanuc Industrial Robust falling 2.4 per cent.

Oil producer Edemitsu Kosan, which jumped 13 percent on Tuesday after Hugh Shell Sekyo agreed to merge on April 1 last year, expanded its gains and rose 5.7 percent.

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