Trade developments are expected to return to focus during Asian trade on Wednesday, following the release of a list of an additional $200 billion in Chinese goods on which the U.S. is considering imposing tariffs.
Nikkei futures traded in Chicago were down 0.48 percent compared to the index’s previous close. Australian SPI futures were higher by 0.26 percent at the end of the Tuesday session.
The goods on the U.S. government’s list would be subject to 10 percent tariffs, according to a statement from U.S. Trade Representative Robert Lighthizer, who said his office will proceed with a public notice and comment period before the levies are officially imposed.
U.S. stock index futures slipped further following the news. The implied open for the Dow Jones Industrial Average futures was more than 185 points lower at of 6:46 p.m. ET. The implied open for the S&P 500 and Nasdaq were also in the red.
The latest news on the trade front comes after the U.S. tariffs on $34 billion in Chinese goods took effect on Friday, a move against which China swiftly retaliated.
U.S. President Donald Trump last week said an additional $500 billion could potentially face tariffs.
On Tuesday, the Dow rose 0.58 percent, or 143.07 points, to close at 24,919.66 — the index’s fourth consecutive session of gains. The S&P 500 edged up by 0.35 percent to 2,793.84 and the Nasdaq composite finished higher by 0.04 percent at 7,759.20.
The advance on Wall Street came as corporate earnings season rolled around. Analysts polled by FactSet expected S&P 500 second-quarter earnings to have grown by 20 percent.
The dollar softened against the safe-haven yen following the latest tariff news, with the greenback trading at 110.83 at 6:58 a.m. HK/SIN, after trading above the 111 level overnight.
Here’s the economic calendar for Wednesday (all times in HK/SIN):
- 7:50 a.m.: Japan May machinery orders
- 8:30 a.m.: Australia Westpac consumer confidence
- Malaysia’s central bank will announce its interest rates decision later in the day
— CNBC’s Fred Imbert contributed to this report.