AFP, Hong Kong :
Asian markets fell Monday as fears of a global trade war continue to dog investors, with Donald Trump threatening fresh tariffs on European cars and reports he is considering curbs on Chinese investment in the US.
There was little sign of relief after equities suffered a pummelling last week in response to tit-for-tat warnings by Beijing and Washington, which has fuelled concerns about the potential damage to the world economy.
The uncertainty overshadowed a modest increase in oil output agreed by OPEC and Russia – which sent energy firms surging with crude prices – and Chinese easing measures.
Tokyo ended 0.8 percent lower, while Hong Kong and Shanghai were both off more than one percent. Sydney lost 0.2 percent and Singapore shed 0.8 percent.
Taipei was one percent lower, while Seoul and Wellington were barely moved.
In early European trade London fell 0.7 percent, while Paris and Frankfurt each shed 0.6 percent.
Concerns the tariff spat could turn into a full-blown trade war were stoked Monday following reports that the Treasury Department is looking at an emergency law beefing up scrutiny of investment by Chinese firms in sensitive US industries.
Treasury Secretary Steven Mnuchin is expected to push the plan this week, Bloomberg News reported.
“This one could well result in an escalating trade war,” Lee Ferridge, a macro strategist at State Street Corp., told Bloomberg TV. “Volatility is going to continue to rise from here.”
While some observers are saying Trump’s moves are part of a negotiating tactic, he has shown no sign of backing down and on Friday threatened to impose a 20 percent tariff on cars imported from the European Union. That came just after the bloc imposed levies on US products, including bourbon, jeans and motorcycles.
Asian markets fell Monday as fears of a global trade war continue to dog investors, with Donald Trump threatening fresh tariffs on European cars and reports he is considering curbs on Chinese investment in the US.
There was little sign of relief after equities suffered a pummelling last week in response to tit-for-tat warnings by Beijing and Washington, which has fuelled concerns about the potential damage to the world economy.
The uncertainty overshadowed a modest increase in oil output agreed by OPEC and Russia – which sent energy firms surging with crude prices – and Chinese easing measures.
Tokyo ended 0.8 percent lower, while Hong Kong and Shanghai were both off more than one percent. Sydney lost 0.2 percent and Singapore shed 0.8 percent.
Taipei was one percent lower, while Seoul and Wellington were barely moved.
In early European trade London fell 0.7 percent, while Paris and Frankfurt each shed 0.6 percent.
Concerns the tariff spat could turn into a full-blown trade war were stoked Monday following reports that the Treasury Department is looking at an emergency law beefing up scrutiny of investment by Chinese firms in sensitive US industries.
Treasury Secretary Steven Mnuchin is expected to push the plan this week, Bloomberg News reported.
“This one could well result in an escalating trade war,” Lee Ferridge, a macro strategist at State Street Corp., told Bloomberg TV. “Volatility is going to continue to rise from here.”
While some observers are saying Trump’s moves are part of a negotiating tactic, he has shown no sign of backing down and on Friday threatened to impose a 20 percent tariff on cars imported from the European Union. That came just after the bloc imposed levies on US products, including bourbon, jeans and motorcycles.
