U.S. President Donald Trump spoke out – and acted out – against both China and Iran on Wednesday, sending Asian markets to a six-week low and traders flocking towards safe-haven assets. Trump ordered an executive order for fresh sanctions against Iran, this time against its metal exports. He said that he needs to squeeze the country until it “fundamentally alters” its nuclear plan. The sanction announcement came shortly after Tehran announced that it was cutting back on its previous curb of its nuclear program. The new sanctions are aimed at exports that comprise approximately 10 percent of the country’s export economy.
Trump also took aim at China on Wednesday, saying that Beijing “broke” the trade deal, and calling into question whether the negotiations will fail completely. Trump has threatened to increase tariffs on Chinese goods as early as Friday, giving Chinese Vice Premier Liu He little time to smooth things over before the new tariffs will take effect.
With the exception of Australia’s ASX 200 which traded up 0.33 percent on Thursday afternoon, all major Asian indexes were lower. Japan’s Nikkei 225 logged its third consecutive day of losses, falling 0.99 percent as of 12:57 p.m. HK/SIN after hitting a five-week low earlier in the session. South Korea’s Kospi suffered the worst losses, trading down 1.97 percent, while Hong Kong’s Hang Seng Index trailed close behind with a 1.95 percent decline. Both of China’s benchmark indexes slumped more than 1 percent.
On the currency market, the dollar index eased for the third consecutive day , trading down 0.02 percent as the greenback continued its struggle against it primary trading partners. The dollar was down 0.17 percent against the yen to 109.91. The greenback also traded modestly lower against the British pound and the euro. Gold futures were higher, up 0.12 percent to $1,282.80 as traders opted for less risky investments.