Asian stock markets sank in early trading Monday following an end-of-week rebound in the region, as trade tensions between the U.S. and China appeared poised to reach new highs.
On Sunday, China said it may decline an offer for renewed trade talks with the U.S. if President Donald Trump carries out his threat to impose an additional $200 billion in tariffs on Chinese goods. “China is not going to negotiate with a gun pointed to its head,” a senior Chinese official said, according to the Wall Street Journal.
Hong Kong’s Hang Seng Index HSI, -1.30% fell 1.6% as damage from a powerful typhoon added to trade worries. Losses were widespread, with tech heavyweights AAC 2018, -5.89% and Tencent 0700, -3.27% dropping more than 3%, along with casino operator Galaxy Entertainment 0027, -1.40% and Geely Automobile 0175, -3.79% .
Stocks on the mainland declined as well, with the Shanghai Composite SHCOMP, -1.11% off 1% and the smaller-cap Shenzhen Composite 399106, -1.54% down 1.4%.
South Korea’s Kospi SEU, -0.66% slipped 0.7% as Samsung 005930, -1.53% was down 1.6%. Indexes in Taiwan Y9999, -0.36% , Singapore STI, -0.63% fell as well.
Benchmarks in Australia XJO, +0.32% , New Zealand NZ50GR, +0.01% and Malaysia FBMKLCI, +0.62% bucked the regional trend, posting modest gains.
Japan’s Nikkei was closed for a holiday.
