AFP, Tokyo :
Fears of a ballooning global trade war sent Asian stocks sharply lower Tuesday, following steep falls on Wall Street amid reports Washington was readying a new phase in its economic confrontation with China.
President Donald Trump has threatened to strike back against China’s retaliation to the US tariffs that are due to take effect July 6.
Trade frictions topped market players’ concerns, with heavy selling in Europe and the US continuing through to Asia after reports Trump was planning new curbs on Chinese investment.
Shanghai opened down more than one percent while Tokyo began trade 0.85 percent in the red.
Asian equities extended their losses in the morning session, with Shanghai down 1.6 percent and Hong Kong off by a similar amount.
Washington has already announced it will impose investment restrictions on Chinese companies by June 30, with the Wall Street Journal reporting that any firm that is 25 percent Chinese-held would face curbs.
The reports drove US stocks down two percent at the lowest point on Monday but they recovered some of their losses after senior White House economic adviser Peter Navarro sought to ease fears in a TV interview.
