Asian markets sink on fears of fresh Trump tariffs on China

Asian markets sank on Monday

following reports that Donald Trump is planning to hit China with another

round of tariffs, dealing a blow to hopes for talks between the two economic


Traders sent regional equities surging on Thursday and Friday as it

emerged that Treasury Secretary Steven Mnuchin had offered to meet officials

from Beijing to avert an all-out trade war.

However, The Washington Post and Wall Street Journal said the president

had decided to impose 10 percent levies on $200 billion of Chinese imports

and could make an announcement in the coming days.

That would come on top of the $50 billion already announced over the

summer and would account for about half of China's exports to the United

States. Beijing has threatened to retaliate to any measures.

Whether this is little more than the president using this leverage as a

negotiating tactic, China officials will continue to be frustrated, said

Stephen Innes, head of Asia-Pacific trading at OANDA.

This good cop bad cop routine continues to undermine Mr Mnuchin's efforts

as it's still not clear if anyone other the Trump himself is commissioned to

cut a deal. And not too unexpectedly, and quite ominously, China could cancel

the meeting.

Hong Kong led losses Monday, dropping 1.6 percent while Shanghai was 0.8

percent off. Seoul and Singapore each lost 0.7 percent, while Wellington and

Taipei also saw deep losses but Sydney edged 0.3 percent higher.

Tokyo was closed for a public holiday.

However, while investors were in a selling mood JP Morgan Asset Management

global market strategist Kerry Craig said some positives could be taken from

the fact Trump is said to be considering 10 percent tariffs, rather than the

feared 25 percent.

No more tariffs would still be the best outcome for the markets but with

the US administration seemingly wanting to pursue its longer term strategic

agenda against China, that's unlikely to be the case, especially as there is

little in the way of pain being felt by the US economy or equity market, he


Timing is also important when it comes to enacting any new tariffs. A

staggered implementation is being the viewed as the best of a bad situation.

� Key figures around 0300 GMT �

Hong Kong � Hang Seng: DOWN 1.6 percent at 26,850.27

Shanghai � Composite: DOWN 0.8 percent at 2,661.03

Tokyo � Nikkei 225: Closed for a public holiday

Euro/dollar: UP at $1.1633 from $1.1627 at 2030 GMT on Friday

Pound/dollar: UP at $1.3075 from $1.3069

Dollar/yen: UP at 112.05 yen from 112.00 yen

Oil � West Texas Intermediate: DOWN nine cents at $68.90 per barrel

Oil � Brent Crude: DOWN four cents at $78.05 per barrel

New York � Dow Jones: FLAT at 26,154.67 (close)

London � FTSE 100: UP 0.3 percent at 7,304.04 (close)

Source: Bangladesh Sangbad Sangstha (BSS)