US-Iran war: China’s stock market index Shanghai Composite Index opened flat, declined over 0.39% to 3,971 on Monday, April 13, as investors assessed rising tensions following reports of a US naval blockade of Iranian ports, after Washington and Tehran failed to reach a peace agreement to end the Middle East conflict.
Over the past month, the index has fallen by 2.80%, but it is still up 21.69% compared to a year earlier.
Trump threats China with 50% tariffs
According to media reports, Donald Trump on Sunday renewed his series of warnings against Iran after peace negotiations in Islamabad broke down, while also targeting China.
His remarks came in response to reports suggesting that US intelligence believes Beijing may be preparing to supply weapons to Iran during a fragile two-week ceasefire that began last Wednesday.
“I doubt they would do that… but if we catch them doing that, they get a 50% tariff, which is a staggering amount.” Trump was quoted as saying by Fox News.
According to the Fox News report, China could send new air defence systems to Iran in the coming weeks, based on inputs from multiple sources familiar with the intelligence findings.
Reacting to the reports, Trump also said the US could offer crude oil to China—both domestically and from Venezuela—a nation Washington effectively controls after earlier actions against President Nicolás Maduro.
“China can send their ships to us… to Venezuela… we have a lot of overcapacity, and we’ll probably sell [oil] for even less money [than Iran],” Trump was quoted as saying by media reports.
According to a report by Hindustan Times, China claims to have played a role in facilitating the ceasefire that temporarily halted the conflict between Iran and the US earlier this week. Additionally, Donald Trump is expected to visit China early next month for discussions with President Xi Jinping.
Asian markets today
Asian markets fell sharply on Monday as a surge in crude oil prices and concerns over a prolonged US-Iran conflict weighed on sentiment, following failed ceasefire talks.
Japan’s Nikkei 225 slipped 0.84%, while the Topix declined 0.42%. South Korea’s Kospi tumbled 1.83%, and the Kosdaq fell 1.43%. Futures for Hong Kong’s Hang Seng index pointed to a weaker start.
Meanwhile, Australia’s S&P/ASX 200 was down 0.74% on Monday.
The Indian benchmark indices, Sensex and Nifty 50, are expected to open on a weaker note on Monday, in line with subdued global market signals.
Gift Nifty trends also point to a gap-down opening for the domestic market, with the index trading around the 23,773 mark—about 328 points below the previous close of Nifty futures.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
