China Tension May Hit Half of Australia’s Benchmark Stock Index
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The ongoing deterioration of Australia’s relationship with its largest trading partner is seen impacting banks, consumer firms and tourism-related stocks that make up almost half the weight of the nation’s benchmark index.
Since Prime Minister Scott Morrison called for an independent investigation into the origins of the coronavirus in April, tensions with China have been rising, with Beijing suspending Australian shipments of barley, halting some beef imports and starting an anti-dumping investigation into Australian wine. Sectors likely to be impacted by the friction account for around 55% of the S&P/ASX 200 Index.