Asian markets plunge as trading partners in the United States and China appear in danger

Asian stock markets dumped in early trading Monday when US-China trade negotiations appeared to be collapsing.

Early Sunday, President Donald Trump discussed that he would raise tariffs of $ 200 billion of Chinese goods to 25% a week, apparently taken by Chinese officials. In response, China may withdraw from the next round of trade negotiations scheduled to begin Wednesday in Washington. US officials had suggested that progress had been made in negotiations last week in Beijing and said it was possible that an agreement could be reached by the end of this week.

But the sudden hard line of Trump spooked investors. US stock market futures sank, with the Dow Jones Industrial Average futures

YMM9, -1,90%

S & P 500 futures

ESM9, -1.88%

and Nasdaq Composite futures

NQM9, -2.23%

all fall around 2% Sunday night.

Hong Kong's Hang Seng Index

HSI, -2.96%

fell 2.5% immediately after trading began on Monday morning. The Shanghai Composite

SHCOMP, -3.35%

fell 3.2% and the smaller cap Shenzhen Composite

399106, -3.64%

doubled approx. 4%. Australias S & P / ASX 200

XJO, -0.98%

was 1.3% and reference indices in Taiwan

Y9999, -0.73%

and Singapore

STI, -2.97%

also declined. Japan's Nikkei and South Korea's Kospi were closed for holidays.

Loss was spread across all sectors of Hong Kong, with Geely Automotive

0175, -7.90%

food processor WH Group

0288, -7.95%

and Apple supplier AAC Technologies

2018, -6.79%

among the largest decliners. CSPC Pharmaceutical

1093, -5.65%

and China Life Insurance

2628, -6.05%

sank as well. Apple producer Foxconn

2354, -3.29%

and Taiwan Semiconductor

23,45% fell in Taiwan. In Australia, Beach Energy

BPT, -2.87%

and Westpac Banking

WBC, [1.45%] fell 1.60%

.

After posting a second fair week on Friday, crude oil prices continued to fall on Monday. US based West Texas Intermediate raw to June delivery

CLM9, -2.39%

was down more than 2% and global reference July Brent crude

LCON9, -2.17%

fell by almost as much.

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