Asian markets follow Wall Street to the downside as trade war concerns increase

Asian markets traded mostly in red territory on Monday, following a strong negative close from Wall Street last week on rising concerns that tensions between the United States and China would lead to a global trade war.

US President Donald Trump signed on Thursday a memorandum in order to implement import tariffs to Chinese products for a volume of about $60 billion.

The tariffs are mainly directed to the technology sector. According to the Trump administration, this measure is meant to penalize China for stealing intellectual property.

On Friday, market sentiment came under pressure after the Chinese government issued a list of 128 US products that could face retaliation if Trump moves forward with tariffs.

In Japan, the Nikkei 225 notched down 0.4 percent by mid-session, while the broader Topix index eased about 0.65 percent. In South Korea, the Kospi was able to gain 0.2 percent.

Sydney’s ASX 200 declined 0.57 percent, with the financial sector leading decliners. Top banking institutions in the country were down, with ANZ, Commonwealth Bank and National Australia Bank all down by nearly one percent.

In China, mainland index Shanghai composite loss 1.17 percent, while the Shenzhen composite dropped by 0.49 percent. Hong Kong’s Hang Seng index was down a quarter of a percent.

On Friday, the Dow Jones industrial average ended with a 424.69 points loss at 23,533.20. The index closed at its lowest level since November. The S&P 500 fell 2.1 percent to 2,588.26, and the Nasdaq composite was down 2.4 percent to 6,992.67.

<<< Stock Indexes >>>

Australia ASX S&P -30.80 -0.52% 5,898.20

Shanghai Composite -51.85 -1.64% 3,100.91

Hong Kong Hang Seng -168.59 -0.56% 30,140.70

Nikkei 225 -99.75 -0.48% 20,518.11

TSEC 50 Index -13.64 -0.13% 10,809.69

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