Asian shares, yuan fall as Sino-U.S. trade talks deadlocked
U.S. stock futures and Asian shares fell on Monday on growing anxiety over whether the United States and China will be able to salvage a trade deal, after Washington sharply hiked tariffs and Beijing vowed to retaliate.
Investors are bracing for threatened “countermeasures” from China in retaliation for Washington’s tariff increase on Friday on $200 billion worth of Chinese goods. The move followed accusations by U.S. President Donald Trump that Beijing “broke the deal” by reneging on earlier commitments.
- E-Mini futures for the S&P 500 shed 1.0%.
- MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.5%
- Τhe benchmark Shanghai Composite and the blue-chip CSI 300 shedding as much as 1.6% and 1.9%, respectively
- Japan’s Nikkei average sunk as much as 1.0% to hit its lowest level since March 28. It last traded down 0.5%.
A slim majority of economists polled by Reuters expects the central bank to keep rates at a record low although calls for a rate cut have grown louder after disappointingly weak first-quarter inflation.
- The offshore Chinese yuan fell to its lowest levels in more than four months at 6.88 to the dollar.
- The dollar was holding at 109.75 yen, down 0.2% on the day and just above a 14-week trough of 109.46.
- The euro was steady at $1.1233, while the dollar was little changed against a basket of currencies at 97.302.
In commodity markets, oil prices remained a relatively tight range.
- U.S. crude futures were last down 0.1% at $61.62 a barrel.
- Brent crude futures gained 0.3 percent at $70.81.
- Spot gold eased 0.1% to $1,283.61 per ounce.
Bitcoin jumped more than 10 percent on Saturday and marked its nine-month high of $7,585.00.