Markets have been badly spooked since U.S. President Donald Trump abruptly declared he would slap 10% tariffs on $300 billion in Chinese imports, ending a month-long trade truce. China vowed on Friday to fight back.
MSCI's broadest index of Asia-Pacific shares outside Japan sank 2.5% to depths not seen since late January. That marked the biggest one-day percentage loss since early October.In China, the blue-chip index .CSI300 fell 1% while the troubled Hong Kong market .HSI hit a seven-month trough.
· Japanese shares tumbled on Monday, as investors grew nervous about a prolonged U.S.-China trade war, with a rapidly strengthening yen dragging down exporters like Panasonic and Daikin.
The Nikkei share average shed 1.7%, extending Friday's sizable loss of 2.1%, to 20,720.29 for its lowest finish since June 5. Of Tokyo's 33 subindexes, 32 industry groups were in the red.
· China let the yuan breach the key 7-per-dollar level on Monday for the first time in more than a decade, in a sign Beijing might be willing to tolerate more currency weakness that could further inflame a trade conflict with the United States.
Shares were also battered on Monday, with plummeting Hong Kong equities weighing on the overall market, said Gerry Alfonso, director at Shenwan Hongyuan Securities Co.
Hong Kong's Hang Seng index .HSI was 2.70% lower in afternoon trade as the city faced major disruptions, with a general strike paralyzing parts of the Asian financial center.
The benchmark Shanghai Composite Index .SSEC lost 1.62% lower for its weakest close since Feb. 22, and the blue-chip CSI300 index .CSI300 dropped 1.91%.
· European stocks tumbled Monday morning as a rapid escalation of U.S.-China trade tensions continues to spook investors worldwide.
The pan-European Stoxx 600 fell by around 1% in early trade, basic resources stocks leading losses with a 2.5% decline as nearly all sectors and major bourses slid into the red.
Reference: CNBC, Bangkok Post
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