Asian Markets Tumble on U.S.-China Tension
On Monday, Asian stock markets fell sharply as doubts resurfaced over escalating trade tensions between the United States and China.
Key Indexes Slide
In Hong Kong, the Hang Seng Index dropped nearly 3.5%. In mainland China, the CSI 300 Index fell about 1.8%. The Shanghai Composite also declined.
Trigger: Trade Escalation
The sell-off came after the U.S. announced plans for 100% tariffs on Chinese goods and export controls on key technologies, in retaliation for China’s curbs on rare earth exports. China defended its moves but refrained from immediate new tariffs, signaling hesitancy to escalate further.
Global Spillovers
The weakness in Asia followed a steep drop on Wall Street last week, as U.S. markets reacted sharply to renewed tariff threats. Many investors fled to safer assets, boosting bond demand and lifting gold prices.
