Stocks in China plummeted on Monday following a re-escalation in U.S.-China trade tensions as President Donald Trump declared an impending increase in tariffs rates on $200 billion of Chinese goods.
In Hong Kong, the Hang Seng Index collapsed 871.73, or 2.9%, to 29,209.82.
Hong Kong-listed shares of Chinese telecommunications equipment company ZTE plummeted 8.82%, with the company being caught in the crossfire as Beijing and Washington spar over trade. Its Shenzhen-listed counterpart also fell 10%.
Markets in Tokyo and Seoul remained shuttered for holidays
The Japanese yen, widely seen as a safe-haven currency, strengthened to 110.75 against the U.S. dollar after seeing lows above 111.6 in the previous week.
The Australian dollar declined to $0.6993 U.S. after touching highs above $0.704 last week. The Aussie dollar is often seen as a proxy for China’s economic prospects, with the country being Australia’s largest trading partner.
CHINA
In Shanghai, the CSI 300 index jettisoned 228.59 points, or 5.8%, to 3,684.62
The offshore Chinese yuan also declined to 6.7790 against the dollar, from highs of around 6.72 last week. Its onshore counterpart changed hands at 6.7655 against the greenback, from around 6.73 last week.
Trump said in a tweet Sunday afternoon that the current 10% levies on $200 billion worth of Chinese goods will rise to 25% on Friday. He also threatened to impose 25% tariffs on an additional $325 billion of Chinese goods “shortly.”
Meanwhile, China is considering canceling its trade talks with the U.S. this week in light of Trump’s latest threats
In other markets
In Shanghai, the CSI 300 index jettisoned 228.59 points, or 5.8%, to 3,684.62
In Singapore, the Straits Times Index dropped 101.67 points, or 3%, to 3,290.62
In Taiwan, the Taiex Index slumped 199.18 points to 1.8%, to 10.897.12
In New Zealand, the NZX 50 lost 52.07 points, or 0.8% to 9,960.62
In Australia, the ASK 200 lost 52.07 points, or 0.8%, to 6,283.73
