HONG KONG, March 5 — Asian markets were mostly up Wednesday as investors weighed bullish growth targets announced by China despite its sluggish economy and the looming prospect of a global trade war.
Global stocks had tumbled Tuesday after China, Mexico and Canada hit back at US tariffs and fears grew that Europe could be President Donald Trump’s next target.
Investors welcomed China’s economic targets for the coming year on Wednesday as the government held its annual meeting of the National People’s Congress.
But observers have tempered expectations for the stimulus given China is facing strong economic headwinds.
These include a persistent property sector debt crisis, stubbornly low consumer demand and stuttering employment for young people.
China set an annual growth target of around five per cent on Wednesday, vowing to make domestic demand its main economic driver.
Beijing also announced a rare hike in fiscal funding, allowing its budget deficit to reach four per cent this year.
It comes alongside a pledge to create 12 million new jobs in China’s cities and a push for two per cent inflation in 2025, an official document seen by AFP Wednesday showed.
The world’s second-largest economy is also planning to increase defence spending by 7.2 per cent, the same as last year.
Hong Kong rose around 2.5 per cent in early trade before pulling back to around 1.5 per cent.
Jakarta climbed more than two per cent and Taipei jumped one per cent.
Tokyo and Shanghai held steady while Seoul was slightly up.
Sydney, Wellington and Bangkok were down around one per cent.
Hong Kong firm CK Hutchison rose 25 per cent after the company agreed to sell its lucrative Panama Canal ports to a US-led consortium under fierce pressure from Trump.
US tariffs are expected to hit hundreds of billions of dollars in total trade between the US and China.
Trump signed an executive order on Monday to increase a previously imposed 10 per cent tariff on Chinese goods to 20 per cent.
China responded by saying it would impose levies of 10 and 15 per cent on a range of US agricultural imports.
“Investors don’t like tariffs, and they are deeply uncomfortable with President Trump’s new world order, which is weighing on market sentiment,” said Kathleen Brooks, research director at XTB trading platform.
“More tariffs are expected from the US in the coming weeks, including for the EU and reciprocal tariffs, which could keep investors on edge in the short term.” — AFP