Does the US-China trade war impact on Asian emerging stock market?

Abstract

When President Donald Trump realized that there was an unfair trade and economic conflict between America and China, he decided to impose tariffs and many different trade barriers on China. Because of this, there has been a trade deficit between these two countries and this also creates some impacts on global financial stability. Furthermore, as the world's two most powerful economies, the trade war has ramifications for the world supply chain, global commerce, economy, and stock market. Due to this, this study tested the reaction of the emerging stock market prices on the US-China trade war by utilizing an event-study method. The final results give that the Asian emerging stock market has a negative abnormal return during the pre-event window (-0.008%). And there was a slight decrease in the abnormal return, it fell to 0.009%. Whilst, the trade deficit is an insignificant effect on the Asian emerging stock market.