Hang Seng Index, CSI 300, US-China trade tensions

Asia-Pacific markets fell on Monday after China and the United States tightened trade restrictions and traded fresh accusations, reigniting tensions between the world’s two largest economies.

Hong Kong’s Hang Seng Index fell 2.22%, while mainland China’s CSI 300 Index fell 2.73%.

The Chinese yuan in foreign transactions increased 0.1 percent to 7.1267 against the dollar. The 10-year Chinese government bond yield lost more than 5 basis points to 1.752%.

China “We are not afraid” of a trade war with the United States, he said on Sunday after President Donald Trump He pledged to impose new sanctions Retaliatory tariffs on Chinese imports.

China spokesman Ministry of Commerce She accused the United States of “textbook double standards.” Trump promised on Friday to process additional 100% tariffs on those imports after China imposed new duties Export controls on rare earth metals.

Goldman Sachs wrote in a note on Sunday that recent political announcements may indicate that China intends to push for greater concessions from the United States.

The Australian ASX/S&P 200 index fell by 0.68%. South Korea’s Kospi fell 2.35%, and the small-cap Cosdaq fell 2.24%.

Singapore’s main index fell as much as 1.5%.

Japanese markets are closed for holidays.

In a Truth is a social function On Sunday, Trump signaled to investors that the president may not follow through on his threat to deploy a “massive tariff increase” on China.

This comment on Friday brought the US trade war with China back to the forefront It sent stocks plummeting In defeating it Wiped out $2 trillion of market value.

“Don’t worry about China, everything will be fine! The well-respected President Xi has had a bad moment. He doesn’t want a depression for his country, and neither do I,” Trump wrote. “The United States wants to help China, not harm it.”

On Friday in the United States, the three major US rates fell.

The sell-off in stocks accelerated until the close, with Dow Jones Industrial Average The stock closed down 878.82 points, or 1.9%, at 45,479.60 points. the Standard & Poor’s 500 The stock lost 2.71% to settle at 6,552.51, while it declined Nasdaq Composite It fell 3.56% to 22,204.43 points. The decline in the broad index was the largest since April 10.