REUTERS – China’s shares rebounded from heavy losses today (July 12) as markets tried to consolidate from the previous session’s steep losses when fears of an escalation in the U.S.-China trade war jolted investor sentiment.
The Shanghai Composite Index opened weaker but has since bounced back 1.9 percent at 2830.44 points by the noon break, while Hong Kong’s Hang Seng rose 0.6%.
Washington has raised the stakes in its trade dispute with Beijing, threatening 10 percent tariffs on $200 billion of Chinese goods. In response, Beijing accused the United States on Wednesday (July 11) of bullying and said it would complain to the WTO.
Equity markets also broadly getting a lift in this session after U.S. inflation data reaffirmed expectations that the Federal Reserve will hike interest rates two more times this year.