Asian Stocks Pressured Concerns over US Security Protection Act

Asian stocks fell on stock trading Wednesday this week amid fears of increased protection by the United States (US).

This was triggered after US President Donald Trump sacked US Secretary of State Rex Tillerson who is considered moderate in his administration. In Asian stocks, the MSCI Asia Pacific stock index outside Japan weakened 0.3 percent.

In yesterday's trading, the benchmark stock index had touched its highest level in 1.5 months. Australia's stock index fell 0.8 percent in early trade. Meanwhile, Japan's Nikkei stock index lost 0.8 percent and South Korea's stock index fell 0.7 percent.

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The weakness is also driven by US stocks or Wall Street is depressed. The Dow Jones industrial average fell 0.7 percent. The S & P 500 stock index slipped 0.6 percent and the Nasdaq stock index slumped 1 percent.

Wall Street was pressured on the move by Trump to dismiss Rex Tillerson after a series of bad relations over North Korea, Russia and Iran. Critics say the move will add to the instability of the US government.

Trump also wants to apply China's import tariffs so that the target of reaching US $ 60 billion is imposed on telecommunications, electronics and information technology.

"Tillerson's departure has made some concerns with a green light for those in the government to encourage more protective action,

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Investors suspect policymakers who favor protectionism will also try to use currency as a trading weapon. Tillerson quit as potential new import duties in China and US consumer price data with 1.8 percent annual core inflation. The economic data rate met expectations.

On the money market, the US dollar was at 106.53 against the yen. The euro rose to its highest level in a month. The euro was in the range of US $ 1.2446.

"Tillerson's exit has been rumored for months, talking about the continuing trajectory of the Trump government, which has also sparked fears of protective action," added Citi analysts.

Based on the Citi report, since Trump took office in 2017, there were 35 senior officials from his government who left. In commodity markets, oil prices edged up. US crude oil prices rose 18 cents to US $ 60.89. Gold prices stabilized in the range of US $ 1,326 per ounce.