Chinese markets led losses in Asia on Tuesday, with major markets in the region closing sharply lower after U.S. President Donald Trump fired a fresh salvo in the ongoing trade spat between the U.S. and China.
In Japan, the Nikkei 225 slumped 171.42 points, or 0.8%, to 22,680.33.
Safe-haven plays like the Japanese currency firmed as investors turned to lower-risk assets. The yen traded at 109.63 to the u.s. dollar, compared to the 110.5 handle seen during the New York session.
In Hong Kong, the Hang Seng was pounded 841.34 points, or 2.8%, to 29,469.15
Meanwhile, in corporate news, Japan's Fujifilm Holdings sued Xerox on Monday for more than $1 billion U.S. after the latter dropped a proposed merger in May. Fujifilm shares fell 1.6%
Elsewhere, shares of ZTE dropped more than 20% in Hong Kong, after the U.S. Senate passed a bill that had implications for an agreement struck with the company to allow it to resume doing business with U.S. firms.
CHINA
In Shanghai, the CSI 300 returned from a long weekend with a loss of 132.31 points, or 3.5%, to 3,621.12
Trump said on Monday that he had asked the U.S. Trade Representative to identify $200 billion worth of Chinese products that will be subject to additional tariffs of 10%. Those tariffs will take effect if China did not "change its practices," Trump added in a statement.
In turn, China said it would take countermeasures if the U.S. went ahead with the additional tariffs it had threatened.
The elevated trade tensions between the U.S. and China have had investors nervous over the trade dispute between the world's two largest economies having an effect on the broader economy.
In other markets
In Singapore, the Straits Times Index dropped 22.69 points, or 0.7%, to 3,301.35
The Taiwan market returned with a clunk, the Taiex index falling 183.28 points, or 1.7%, to 10,904.19
In Korea, the Kospi index lost 27.8 points, or 1.2%, to 2,376.24
In New Zealand, the NZX 50 plummeted 110.99 points, or 1.2%, to 8,863.24
In Australia, the ASX 200 lost two points to 6,102.12
