Asian markets fall as trade war fears weigh on sentiment

There was little sign of relief after equities suffered a pummelling last week in response to tit-for-tat warnings by Beijing and Washington, which has fuelled concerns about the potential damage to the world economy.

Asian markets fall as trade war fears weigh on sentiment

World Bulletin / News Desk

Asian markets fell Monday as fears of a global trade war continue to dog investors, with Donald Trump threatening fresh tariffs on European cars and reports he is considering curbs on Chinese investment in the US.

The uncertainty overshadowed a modest increase in oil output agreed by OPEC and Russia and Chinese easing measures.

Tokyo ended 0.8 percent lower, while Hong Kong and Shanghai were both off more than one percent. Sydney lost 0.2 percent and Singapore shed 0.8 percent.

Taipei and Manila were both one percent lower, while Seoul and Wellington barely moved.

In early European trade London fell 0.7 percent, while Paris and Frankfurt each shed 0.6 percent.

Concerns the tariff spat could turn into a full-blown trade war were stoked Monday following reports that the Treasury Department is looking at an emergency law beefing up scrutiny of investment by Chinese firms in sensitive US industries.

Treasury Secretary Steven Mnuchin is expected to push the plan this week, Bloomberg News reported.

"This one could well result in an escalating trade war," Lee Ferridge, a macro strategist at State Street Corp., told Bloomberg TV. "Volatility is going to continue to rise from here."

Güncelleme Tarihi: 25 Haziran 2018, 13:50
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