ECONOMY
On Monday , Asian Indices hit hard as trade negotiations between China and the United States deteriorated suddenly, reversing apparent progress made in recent months.U.S. President Donald Trump sharply escalated trade tensions between the world’s two largest economies with tweeted comments on Sunday that talks toward a trade deal with China were proceeding “too slowly”, and that he would raise tariffs on $200 billion of goods to 25% on Friday from 10%.
He also said he would target a further $325 billion of Chinese goods with 25% tariffs “shortly”.
The Wall Street Journal reported on Monday that China was considering cancelling trade talks scheduled for this week following Trump’s threats.
In early Asian trade, MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.2%. E-Mini futures for the S&P 500 slid 1.7% after the U.S. payroll data had helped to lift Wall Street stocks on Friday.
CURRENCY
China’s offshore yuan plunged, weakening to 6.8108 per dollar, its weakest level since January 23.
The dollar index, which tracks the greenback against a basket of six major rivals, was up at 97.574.
The euro hit its lowest since January around 123.44 yen and was last at 123.75.
The single currency was steady on the dollar at $1.1185, while the dollar index was a fraction firmer at 97.548.
COMMODITY
Oil prices tumbled by more than 2 percent on Monday after U.S. President Donald Trump on Sunday said he would sharply hike tariffs on Chinese goods this week, risking derailing months of trade talks between the world's two biggest economies. U.S. crude plunged 2.15% at $60.61 a barrel and Brent crude fell 1.78% to $69.59 per barrel.
Spot gold jumped 0.4% to trade at $1,283.65 per ounce.
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