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Stocks extend slide, yen adult as Sino-U.S. trade brawl escalates

TOKYO (Reuters) – Asian bonds extended a tellurian downturn on Tuesday, while a safe-haven yen rose as U.S. President Donald Trump threatened new tariffs on Chinese products in an sharpening tit-for-tat trade fight between a world’s dual biggest economies that has rattled financial markets.

FILE PHOTO: A male looks during an electronic house display Japan’s Nikkei normal outward a brokerage during a business district in Tokyo, Japan Aug 9, 2017. REUTERS/Kim Kyung-Hoon

Trump warned on Monday that Washington would levy a 10 percent tariff on $200 billion of Chinese products after Beijing’s preference to lift tariffs on $50 billion in U.S. goods. Trump pronounced if China increases a tariffs again in response to a latest U.S. move, “we will accommodate that movement by posterior additional tariffs on another $200 billion of goods.”

The retaliatory moves come after Trump pronounced final week he was pulling forward with tariffs on $50 billion of Chinese imports.

The trade frictions have kept financial markets on edge, with investors increasingly disturbed that a full-blown trade dispute could derail tellurian growth.

SP 500 futures ESc1 were off 0.6 percent, indicating to a another down day for Wall Street shares that slipped on Monday.

MSCI’s broadest index of Asia-Pacific shares outward Japan .MIAPJ0000PUS dipped 0.1 percent.

Japan’s Nikkei .N225 mislaid 0.45 percent, South Korea’s KOSPI .KS11 edged down 0.1 percent while Australian bonds combined 0.3 percent.

The dollar fell 0.45 percent to 110.06 yen JPY= following Trump’s tariff comments. The yen is mostly sought in times of marketplace misunderstanding and domestic tensions.

“The financial markets are perplexing to benefit a breather after final week, when there were many news events, though U.S.-China trade stays a slow theme, during slightest until a U.S. tariffs take outcome early in July,” pronounced Masahiro Ichikawa, comparison strategist during Sumitomo Mitsui Asset Management in Tokyo.

“While trade tensions are not a certain theme, a marketplace has turn accustomed to President Trump’s comments, that seem to be negotiating tactics.”

The euro was 0.05 percent aloft during $1.1631 EUR=. The Australian dollar AUD=D4, mostly seen as a substitute to China-related trades, strew 0.25 percent to $0.7404.

In commodities, wanton oil markets remained flighty forward of Friday’s OPEC assembly during a time when Russia and Saudi Arabia are pulling for aloft output.

Brent wanton futures LCOc1 fell 0.3 percent to $75.11 a tub after rallying 2.5 percent overnight.

Editing by Shri Navaratnam

Article source: http://feeds.reuters.com/~r/reuters/INbusinessNews/~3/aB-RMK8_fc0/stocks-extend-slide-yen-up-as-sino-u-s-trade-dispute-escalates-idINKBN1JF01T

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