TOKYO (AP) – Asian stocks fell on Monday after the recent escalation in the US-China trade war renewed uncertainty around global economies, as well as questions about what President Donald Trump might say next.
Japan's benchmark Nikkei 225 started plunging as soon as trading began, standing at 20,234.87 in the morning session, down 2.3%. Australia's S & P / ASX 200 sank 1.5% to 6,427.20. South Korea's Kospi lost 1.7% to 1,916.14. Hong Kong's Hang Seng fell 3.3% to 25,309.37, while the Shanghai Composite was down 1.2% at 2,862.87.
Stephen Innes, managing partner of Valor Markets in Singapore, compared the difficulty of assessing the unstable market situation in reading tea leaves. [1
"The problem we are facing right now is that we are making a lot of assumptions in front of economic realities." The economy consists of consumption, Innes said. If interest rates fall, he added, consumer spending is likely to increase and act as a buffer to the economy.
"The market is really waiting for them to cut interest rates," said Innes. Right now, we still face that uncertainty. "
The Dow Jones Industrial Average plunged more than 600 points Friday after the latest escalation in the US-China trade war rattled investors. The broad sell sent the S&P 500 to its fourth straight weekly loss.
The fallout began after Trump reacted angrily to Twitter following China's announcement of new $ 75 billion in US goods tariffs. ns "he" ordered US companies operating in China to consider moving them to other countries – including the United States
Trump also said he would respond directly to tariffs – and after the market closed he delivered, announce that the United States would increase existing tariffs of $ 250 billion in Chinese goods to 30% from 25%, and that new tariffs for an additional $ 300 billion of imports would be 15% instead of 10%. These announcements are likely to affect stock markets in Asia when trading opens there on Monday.
The ongoing trade dispute between Washington and Beijing, and in particular its unpredictability, will certainly have detrimental effects on Asia. The unpredictability influences the real decisions central banks make about fiscal policy and companies take on their strategies and investments, and sets out a series of uncertainties.
Zhu Huani of Mizuho Bank in Singapore said that what he called Trump's "tan tantrum" triggered "the feeling that tariffs may continue to rise," with "the unpredictability of the timing and scope of these trade actions risking the crippling of business decisions and large ticket expenses for the business. "
" No matter which way you cut the cake, it is almost impossible to construct a bullish or even neutral scenario for the stock markets today, "said Jeffrey Halley, senior market analyst at Oanda.
Trump tweets around 11am last Friday saw a surge in sales.  The S&P 500 fell 75.84 points, or 2.6%, to 2,847.11 The index is now down 4.5% for the month, which is still up 13.6 Dow lost 623.34 points, or 2.4%, to 25,628.90, falling short by 745 points, and Dow has had five falls of 2% or more this year, with three of those coming this month Nasdaq gave up 239.62 points, or 3%, to 7,751.77, while the Russell 2000 index for smaller corporations slipped 46.52 points, or 3.1%, to 1,459.49.
Trump also said Friday Tomorrow he "ordered" UPS, Federal Express and Amazon to block any deliveries from China of the potent opioid drug fentanyl. cooperatives tried to assess the possible implications.
Some analysts believe the Federal Reserve will lower interest rates this year.
Federal Reserve Governor Jerome Powell suggested last week that the central bank was willing to cut interest rates, but gave no clear signal as to when and how much, while it suggested that uncertainty surrounding Trump's trade war has complicated the central bank's ability to set interest rates.
A reduction in the quarterly interest rate in September is considered all but certain. Some believe the Fed will cut interest rates again in December.
The price of reference crude fell 71 cents to $ 53.46 a barrel. It dropped $ 1.18, or 2.1%, to settle the $ 54.17 barrel on Friday, as traders worried that the recent escalation in the trade battle could reduce global energy demand. Brent crude, the international standard, fell 63 cents to $ 58.71 a barrel.
The dollar fell to 105.24 Japanese yen from 106.65 yen on Friday. Euro strengthened to $ 1.1145 from $ 1.1057.
AP Business Writers Alex Veiga and David Koenig contributed.