TOKYO (Reuters) – A sell-off in Chinese stocks led Asian stocks to a four-month low on Tuesday, when US President Donald Trump threatened new tariffs on Chinese products in a growing trade war of eye per eye between the two largest economies in the world.
Spreadbetters waits that the European shares follow their Asian peers and open lower, with the FTSE of Great Britain. The FTSE fell 0.3 percent, the German DAX .GDAXI losing 0.7 percent and the French .ACCHI losing 0.75 percent.
Trump warned on Monday that Washington would impose a 10 percent tariff on $ 200 billion of Chinese goods after Beijing's decision to raise tariffs on $ 50 billion in US goods, which was a reprisal for Rates announced on Friday.
Trump said that if China increases its tariffs again in response to the latest US measure. UU., "We will comply with that measure by applying additional tariffs on another $ 200 billion of goods."
China warned that it will take "qualitative" and "quantitative measures if the US government publishes an additional list of tariffs on its products."
Trade frictions have unnerved financial markets, with investors and Companies increasingly concerned that a full-fledged commercial battle could derail global growth.
"Trump seems to be employing a tactic similar to the one he used with North Korea, by bluffing first in order to gain an advantage. in the negotiations. The problem is that this tactic is unlikely to work with China, "said Kota Hirayama, senior emerging market economist at SMBC Nikko Securities in Tokyo.
" A trade dispute between the US. UU And China alone will not affect global growth. But there are always chances that Trump will continue to increase his threats, which could have broader implications. The increase in trade has helped growth in emerging markets and this could be adversely affected. "
MSCI's broader index of Asia and the Pacific shares out of Japan. MIAPJ0000PUS lost 1.2 percent at its level Lower since early February, dragged by a fall in Chinese stocks.
The Shanghai Composite Index .SSEC fell by 3 percent and reached its lowest level since July 2016 and the Hang Seng .HSI of Hong Kong
"China's economy has already been clouded by a sharp slowdown in the growth of fixed asset investment due to the government's deleveraging drive, a problematic real estate sector, a growing burden of debt and growing credit defaults, "wrote Nomura economists.
" The growing risk of a disruptive trade conflict makes the situation worse. "
The Nikkei .N225 of J Japan lost 1.4 percent, South Korea's KOSPI .KS11 retreated 0.9 percent, while Australian equities resisted and added 0.2 percent to a depreciation of the currency and a rebound during the night in the prices of basic products.
Futures of the S & P 500 ESc1 fell 0.85 percent, signaling another day of decline for Wall Street shares, which fell on Monday.
The dollar fell 0.75 percent to 109,715 yen JPY = after Trump's tariff comments. The yen is often sought in times of market turmoil and political tensions.
The euro was 0.1 percent firmer at $ 1.1633 EUR =.
The Chinese yuan CNY = CFXS skated at a minimum of five months. The Australian dollar AUD = D4, often seen as a proxy for operations related to China, brushed a one-year low of $ 0.7393.
In commodities, oil markets remained volatile before the OPEC meeting on Friday at a time when Russia and Saudi Arabia are pushing for higher production.
Brent LCOc1 crude futures were down 0.65 percent at $ 74.87 a barrel after a 2.5 percent rebound overnight.
The lowest risk assets won in the last round of commercial threats.
Spot gold XAU = rose 0.35 percent to $ 1,283.02 an ounce. The yield on the 10-year US Treasury bond US10YT = RR touched 2,882 percent, its lowest level since June 1.
Information of Shinichi Saoshiro; Edition of Kim Coghill and Jacqueline Wong