Chinese equities are leading losses at the break
- Hang Seng -1.6%
- Shanghai Composite -1.1%
- CSI 300 -1.1%
- Kospi -0.9%
As the trade rhetoric between US and China is set to ramp up, Asian investors are feeling rather uneasy about the potential escalation in trade tensions between the two countries that is to come.
Weekend news stating that Trump may announce the $200 billion tariffs as early as today got the ball rolling. And when China said it may not play nice in trade talks that is scheduled for later this week, it's only helping to amplify fears even more. There isn't a major risk off sentiment seen in markets just yet but keep an eye on any further downturn in the equities space for a potential indicator for markets later today.
The only good thing so far I can point to that is helping yen pairs stay flat so far is that the Nikkei is closed for trading today while US equity futures are trading a little higher despite the trade rhetoric. Meanwhile, 10-year Treasury yields held near 3% into the close on Friday and that also helps a little.