STI loses 1.3% as US-China trade tensions heat up

EQUITY markets in Asia continued to trade mixed as US-China trade frictions and lower oil prices weighed in before the release of US consumer price index (CPI) data for July.

On Wednesday, China said that it will impose a tariff rate of 25 per cent on US$16 billion worth of goods imported from the US from Aug 23, the same day that the Trump administration plans on levying 25 per cent additional tariffs on US$16 billion worth of Chinese goods.

In a note, Suan Teck Kin, head of research, UOB said: "With the tug-of-war on trade continuing between the US and China, and stakes getting larger, there is no sign that both sides will be backing down or coming to the negotiation table any time soon."