Asian markets slipped on Monday as investors digested the escalation in trade tensions between the U.S. and China after both countries announced tariffs last week.
Japan’s Nikkei 225 declined 0.53 percent, with most sectors trading lower. Shippers led losses in the morning, with the Topix sea transport subindex sliding 3.13 percent. Steelmakers dropped 2.17 percent and mining stocks fell 2.48 percent.
South Korean markets were more measured, with the benchmark Kospi slipping 0.17 percent while the secondary Kosdaq held just above the flat line. Automakers traded higher, with Hyundai Motor up 0.75 percent, although large cap technology names declined. Heavyweight Samsung Electronics slid 1.68 percent.
Down Under, the S&P/ASX 200 was little changed, with the index last higher by just 0.02 percent as declines in the materials subindex weighed on the broader market. Mining majors Rio Tinto and BHP slid more than 2 percent, while banking names eked out moderate gains.
Markets in China, Hong Kong, Taiwan and Indonesia will be closed on Monday for holidays.
Trade is likely to be top of mind for investors after the Trump administration last week said it will impose a 25 percent tariff on a list of 818 items of Chinese goods worth around $34 billion beginning July 6. Measures affecting an additional 284 products worth $16 billion will be subject to review before taking effect.
In response, China said a 25 percent tariff will be implemented on U.S. goods, including soybeans and electric vehicles, worth $34 billion starting July 6. Another list of U.S. imports worth $16 billion will be subject to review before being applied.
Despite the latest dust-up on the trade front, U.S. stocks finished the last session well off the day’s lows. The Dow Jones industrial average slipped 0.34 percent, or 84.83 points, to close at 25,090.48, after losing as much as 280.93 points earlier.
On the energy front, oil prices extended losses after slumping in the last session ahead of OPEC’s meeting in Vienna later this week. The declines also came amid the trade jitters, as energy products had been included in the list of additional U.S. goods that China could target at a later date.
Brent crude futures edged down by 0.48 percent to trade at $73.09 per barrel after settling more than 3 percent on Friday. U.S. crude futures declined 1.15 percent to $64.31.
In foreign exchange, the dollar index, which tracks the dollar against a basket of currencies, last stood at 94.873. Against the yen, the dollar traded at 110.63 at 8:14 a.m. HK/SIN.
