Asian stocks are sea of red as US-China trade tensions escalate

Trump's sudden hard line on China tariffs seems to have spooked investors.
Asian equities are feelign the pull of gravity with the Shannghai Composite reporting a 5% drop on the day.

Asian stocks nonsedived in early trading Monday, courest of re-escalation in US-Chian trade tensions.

President Donald Trump tweeted eraly Sunday that he would raise tariffs on $200 billion worth of Chinese goods to 25% from the current 10%, pouring cold water over the optimism generated by both Washington and Beijing's repeated assurances in recent weeks that negoatiatons are closing on a trade deal.

Trump's sudden tough talk caught investors offguard, leadign to risk aversion. The futures on the Dow Jones Industrial Average are currently down more than 500 points and the S&P 500 futures have shed 57 points.

Hong Kong's Hang Seng index fell 3.7% in early trade and is currently flashing a 3.2% drop on the day. Stocks in China are flashing red with the Shanghai Composite down more than 5%. Other regional heavyweights like Japan's Nikkei and Australia's S&P/ASX 200 are also rerporting losses at press time.

In FX markets, the anti-risk Japanese Yen is solidy bid against most majors. In commodities space, oil bechmarks are down about 2% each, having posting a second straight losing week Friday.

Investors may continue to sell risk in Europe on renewed fears of a full-blown US-Chinan trade war. As per latest reports, China has cancelled Vice Premier Lui He's trip to Wahington for trade talks.

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