July 6, 2018 / 2:10 AM / 3 months ago

Chinese stocks rise, yuan falls ahead of tariff trigger

SHANGHAI, July 6 (Reuters) - Chinese stocks rose and the yuan fell on Friday morning ahead of the implementation of major tariffs that will move the trade row between the United States and China to a new level and cloud the global economic outlook.

At 0148 GMT, the benchmark CSI300 Index was up 0.44 percent while the Shanghai Composite Index had risen 0.3 percent.

The yuan was trading at 6.6561 per dollar, after ending the late session on Thursday at 6.6371.

“There shouldn’t be huge volatility in the market because it’s all expected. Investors know what’s going to happen and it has already been priced in,” said Li Liuyang, senior foreign exchange analyst at China Merchants Bank in Shanghai, referring to the yuan market.

“The market will pay attention to any follow up, whether Trump escalates further, or anything unexpected happens.”

The United States is set to impose tariffs on $34 billion of Chinese imports from 0401 GMT on Friday and has warned it may ultimately target over $500 billion worth of goods, or roughly the total amount the United States imported from China last year.

Beijing has vowed to immediately respond with an equal amount of tariffs of its own against U.S. autos, agricultural and other products, though it is unclear how swiftly the actions could escalate into an all-out trade war. (Reporting by John Ruwitch and Winni Zhou; Editing by Sam Holmes)

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