This was driven by the strengthening of the global stock market, especially wall street. Investors expect potential trade war between the United States (US) and China can be avoided.
US states willingness to negotiate after the proposal of imposing tariff up to USD 50 billion for goods of China. The US move has received a reply from China that will impose tariffs on US imports of goods.
In stock trading Thursday (5/4/2018), quoted by Reuters, MSCI Asia Pacific stock index outside Japan rose 0.2 percent. Japan's Nikkei stock index rose 1.2 percent.
Strengthening Asian stock market is also supported by positive wall street. The Nasdaq stock index rose 1.45 percent and the S & P stock index climbed 1.16 percent.
"I think the action of protectionism and the real impact will be much less than the headlines. Cross-border trade with China has tumbug significantly over the past decade. The economic dependence is very deep. Both countries (US-China) have many disadvantages when increasing the trade war, "said CEO Jennison Associates, Jeffrey Becker.
Many investors view the new tariff plan on Chinese goods as only part of the negotiating strategy, and not the final policy.
US Economy Advisor Larry Kudlow says, if tariff negotiations can be part of the process. Announcement of the tariff of goods from each country assessed new proposals opening.
Therefore, the possibility of a trade war does not occur in the near future. Each country will maneuver. The US previously proposed tariffs of up to 25 percent for 1,300 industrial, transport and medical products from China.
Some argue that the global economy is so strong can overcome the impact of the proposed tariff. Others warned that uncertainty over fears of a trade war could keep many companies from maintaining capital expenditures in the near future.
Trade war concerns also affect a number of assets. US soybean and corn prices fell 2.2 percent and 1.9 percent respectively. Oil prices also rose again. US oil prices rose 0.5 percent to USD 63.71 per barrel position. In the currency market, the US currency is in the range of 106.76 per yen. The euro is trading around USD 1.2286.
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