After the Pahalgam attack, there is tension between India and Pakistan. On the other hand, Trump’s trade war has also created panic all over the world. However, despite this, most of the big stock markets of the world were seen in the last one week. Index like India’s Nifty 50, France’s CAC 40, Germany’s DAX, America’s Dow Jones, NASDAQ and Japan’s Nikkei 225 saw a significant increase.

But in this entire global rapid period, China’s Shanghai Composite Index was the only big index that closed down with a decline. The big thing is that this decline is not only of data, but it shows that there are some serious underlying problems in China’s economy and market, which are affecting the trust of investors.

Strength in markets around the world including India

Talking about the figures, India’s Nifty 50 has risen to +1.28 per cent last week, America’s Nasdaq +3.42 per cent, Dow Jones +3.00 per cent, Japan’s Nikkei 225 +3.15 per cent, German’s dax +3.80 per cent and France’s CAC 40 +3.11 per cent. Apart from this, Hong Kong’s Hang Seng +2.38 percent, South Korea’s KOSPI +0.53 percent, and S&P of America also went up 500 +2.92 percent. It is clear from these data that global economic perception has been positive and the trend of investors has increased towards taking risks. There has been good purchase in technical shares, banking and consumer sectors around the world.

China’s stock market alone

Apart from this, China’s Shanghai Composite Index fell -0.49 per cent, which suggests that investors suffered losses in China’s stock market. The question arises that when all the rest of the markets are showing fast, what happened in China that the market has come down?

Challenges of China’s economy

According to the expert, the first major reason for this is the slowdown in the Chinese economy. There is a huge recession in the property sector there. Large real estate developers are burdened with loans and new projects have come to a standstill. Along with this, common people are also avoiding spending, due to which domestic demand is weakening.

The second major problem is geopolitical stress. China’s relations with the US and other Western countries remain constant stressful. Due to this, investors are afraid that more ban or business obstacles do not come in future.

Questions on the policies of China government

Some policies adopted by the Chinese government have also affected the notion of the market. From curbing technology companies to strictness on the private sector, there are many steps that make investors uncomfortable. Due to this, foreign investors are investing money in other emerging markets instead of China.

Difference between global and local

One thing is clear from this whole situation that global economic activities do not have the same impact on every country. While most markets in America, India, Europe and Asian countries have shown good recovery, China is still under pressure. This will affect not only the returns of investors but also on the global economic situation of China. If there is no improvement soon, it can decline and deepening.

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Trump Tariff: The Asian stock market saw a huge decline on Monday after US President Donald Trump’s tariff was imposed. From Shanghai to Tokyo and Sydney to Hong Kong, the shares of the Asia-Pacific region declined so tremendously on Monday as it was not seen in the previous decades.

China’s Shanghai Composite Index recorded more than 8 %, Hong Kong’s Hong Seng recorded more than 13 percent and Japan’s Nikkei index recorded a decline of more than 7.8 percent. When the red color started deepening in the stock market, an analyst called it ‘bloodbath’.

Trump’s tariff caused a stir in Asian market

European markets also led to a decline in early trade. This decline was the highest in defense and bank shares. This uproar in the stock market is no less than a shock for the manufacturing sector of Asia because America is a big market for them. Exports from clothes to cars made here are the highest in America.

Countries like Japan and South Korea are also involved in Trump’s tariff, on which 26 percent tariffs have been imposed. Vikasshiral like Trump Vietnam is also preparing to impose 46 percent tariffs on the country. Apart from this, Cambodia has been imposed on 49 percent, Thailand 36 percent on Thailand and 54 percent on China. Many other countries like Singapore, New Zealand and Australia have also started baseline tariffs.

Asian market is afraid of this

Speaking to BBC, Chief Economist Kian Wang, Chief of Asia-Pacific of Investment firm Vangard, said, Asia is suffering the brunt of Tariff Hike of America. There is scope for conversation, but this new phase of high tariffs can remain. It is being told that Trump’s tariff policy is likely to cause a slowdown in America. Asian countries are very nervous due to this because this will cause great damage to their export in America.

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