June 3 (Reuters) - Asian stocks sank in May, halting a
four-month-long rally, as an increase in U.S. tariffs on Chinese
goods lowered the chances of an immediate trade deal between the
world's two largest economies and stoked concerns about a global
economic downturn.
In May, the MSCI's broadest index of Asia-Pacific shares,
.MIAP00000PUS shed about 6.2%, its steepest monthly decline
since October 2018.
Optimism over a Sino-U.S. trade deal — which boosted
investments in riskier assets earlier this year — dwindled after
the United States raised tariffs on $200 billion worth of
Chinese imports to 25% from 10% on May 10. China retaliated by
raising tariffs on $60 billion worth of U.S. imports effective
June 1. Adding to trade war fears, U.S. President Donald Trump
unexpectedly threatened to impose a 5% tariff on all goods
coming from Mexico starting on June 10 until illegal immigration
across the U.S.-Mexico border is stopped. In May, equities markets in Hong Kong .HSI , Singapore
.STI , Japan .N225 , South Korea .KS11 and China .SSEC ,
all fell between 5% to 10%.
On the other hand, Indian .NSEI markets led the region,
gaining about 1.5%, following Prime Minister Narendra Modi's
dramatic win in India's general elections. Australia .AORD and
New Zealand .NZ50 , also secured solid gains last month.
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Asian-Pacific equities monthly price change -May https://tmsnrt.rs/2WI2vfL
Asia-Pacific equities performance in 2019 https://tmsnrt.rs/2WEkqUM
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