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Asian Shares Slumped On Monday as The Latest Barrage Within the Sino-U.S. Trade War

Asian shares slumped on Monday as the latest barrage within the Sino-U.S. trade war jolted confidence in the world economy and flung investors rushing to the protected harbor of sovereign bonds and gold, whereas slugging surfacing market currencies.

However, equity markets later pared some losses, with E-Minis for the S&P 500 turning positive, after U.S. President Donald Trump mentioned China had contacted Washington overnight to say it wished to return to the negotiating table.

Speaking on the avocations of a summit of major industrialized countries in France, Trump praised Chinese President Xi Jinping as a prominent leader and mentioned he welcomed his desire for a trade deal and calm.

Despite the positive sign for Wall Street, European inventory markets still considered set to comply with Asia’s slide, with EURO STOXX 50 futures down about 1%, German DAX futures slipping 0.9% and France’s CAC 40 futures tripping 0.7%.

Yields on benchmark 10-year Treasury debt sank to their lowest since mid-2016, whereas gold hit its highest since April 2013 as the risk was avoided.

On Friday, Trump introduced an additional duty on some $550 billion of focused Chinese items, hours after China revealed retaliatory tariffs on $75 billion worth of U.S. items.

China’s onshore yuan fell 0.7% at one level to a new 11-year low of 7.15 to the dollar and nailed a record low in foreign commerce, earlier than clipping losses after Trump’s latest feedback.

MSCI’s most extensive index of Asia-Pacific shares outside Japan shed 1.9%, and Australia 1.3%.

Japan’s Nikkei lost 2.2%, whereas Shanghai blue chips fell 1.2%.

At the G7 summit meeting in France over the weekend, Trump caused some uncertainty by intimating he may have had second opinions on the tariffs.

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