International Business: Asian markets tumble after Wall St battering as China retaliates

Dow plunges 700 points amid escalating trade war between US, China

Stocks fell sharply on Monday after China chose to raise tariffs on some USA goods as the ongoing trade war between the world's largest economies intensifies.

The Dow Jones Industrial Average on Monday fell 617.38 points, or 2.38 per cent, to 25,324.99, the S&P 500 lost 69.52 points, or 2.41 per cent, to 2,811.88 and the Nasdaq Composite dropped 269.92 points, or 3.41 per cent, to 7,647.02.

The S&P 500 .SPX and the Dow .DJI recorded their largest percentage drops since January 3 on Monday in one of Wall Street's worst selloffs this year after China hit back with tariffs on $60 billion worth USA goods.

The recent run of losses has knocked almost 5% off the S&P 500 since hitting an all-time high on May 1, putting the index on course for the biggest monthly decline since December.

Mike Wilson, Morgan Stanley's chief US equity strategist, told clients in a note Monday that higher USA tariffs on Chinese goods will likely turn into a a headwind for corporate earnings - and the economy could fall into a recession if the country's trade war keeps escalating.

"An eventual agreement still seems the most likely outcome, although political miscalculation is a rising risk", said Paul Christopher, head of global market strategy at Wells Fargo Investment Institute.

The S&P 500 posted 12 new 52-week highs and 22 new lows; the Nasdaq Composite recorded 30 new highs and 151 new lows.

The Dow is up 2,204.59 points, or 9.4%. Many are still confident that both sides will eventually reach a deal. The VIX, however, is still far below the elevated levels it reached at the end of previous year when the S&P 500 came extremely close to entering a bear market, meaning a decline of 20% or more from a recent peak.

CSL gained 1.5 per cent to $200.84.

Mike Pompeo to visit Brussels today to discuss Iran
Russian Federation earlier announced Pompeo's visit but it had been unclear whether he would meet Putin. Pompeo's trip to Russian Federation also comes as tensions simmer between the two countries over Iran .

But Asian stocks fell on Monday as traders followed Wall Street's example and braced themselves for a prolonged trade war. Tech stocks in the S&P 500 jumped 1.6%, with semiconductor companies making particularly big gains.

The worries about trade have shattered a remarkably steady rise for stocks.

Gold fell 0.3% to $1,297.70 an ounce.

China industrial production and retail sales are slated for Wednesday, the same day as USA retail sales and industrial production. Yields on 10-year German bunds slipped to the lowest since 2016, but they jumped for Italy's debt, as the nation's deputy premier Matteo Salvini racheted up tensions over the country's deficit.

Trump also said he thinks the winning the country's trade dispute with China.

Uber's shares rose another 6.4 percent in after-the bell trading after a United States labour agency said it had concluded that the company's drivers were independent contractors, not employees.

Down under, Australia's traded 1.0% lower.

Many market players "downplayed" the significance of the March inversion, he added, believing the Federal Reserve would sit on its hands so as not to derail the economic expansion. The company reported first-quarter losses that were wider than expected, but revenue that topped expectations. US crude dropped 1% to settle at $61.04 per barrel.

CURRENCY: The dollar edged up to 109.64 yen from Tuesday's 109.61 yen.

Related News:

Most liked

Atletico confirms Griezmann's departure
A native of Macon, France , the 28-year-old World Cup victor joined Atleti in 2014 from Real Sociedad . He added: "I have to leave, I want to see new places and face new challenges, it's what I need now".

Beloved Actor And Comedian Tim Conway Has Died at 85-Years-Old
Patton Oswalt shared an old clip from The Carol Burnett Show and said watching Conway "destroy his castmates is pure joy". He also won guest actor Emmys for a 1996 appearance on " Coach " and another in 2008 for " 30 Rock ".

Disney Takes Full Control of Hulu in Deal with Comcast
Disney's own streaming service , Disney+, is scheduled to launch November 12. Comcast's NBCUniversal, meanwhile, will debut a streaming service in 2020.

Game of Thrones season 8 torches another viewer record with The Bells
Daenerys snapped while looking at the Red Keep, the home her family built, after Cersei had rung the bell and surrendered to her. In this week's bloody episode " The Bells ", Jamie reunites with Cersei, and gets the wish he's always had by dying in her arms.

Eden Hazard Drops Massive Transfer Hint
Sarri also cast doubt over his own position and could not say for sure if he will be at Stamford Bridge for a second season. Sarri declared: "I know very well that Eden tried to do his best for seven seasons at Chelsea ".

China slaps tariffs on $60 billion in US goods
China's nationalist Global Times tabloid said in an editorial on Monday that the country had no reasons to fear a trade war. Trump started raising tariffs last July over complaints China steals or pressures companies to hand over technology.

Sports Gambler Doubles Down On Tiger Woods After Million Dollar Score
The result? He shot an opening-round 70 at the Farmers Insurance Open, which is tied for his best first round of the season. After his maiden win in Texas, Conners played three more weeks before finally taking a break the last two weeks.

Pakistan Urges US to Refrain From Attacking Iran
The Trump administration provided a direct line that the Iranians could call when they're ready to talk, CNN reported .

Doris Day, actress and animal activist, dead at 97
Her first film was Romance on the High Seas in 1948, which led to her agreeing a contract with Warner Brothers. In 1951 Day married agent Martin Melcher and after his 1968 death, she found he had left her almost penniless.

Emilia Clarke Posts Photo Without Wig After 'Game Of Thrones' Episode 5
Speaking on a more positive note, the actress revealed how working on the Game of Thrones helped her through the hard time. She quipped that she needed the bubbly to get through episode five, which featured a bloody battle.

Dominant Man City will only get better, Pep Guardiola warns rivals
Norwich City head coach Daniel Farke and Chris Hughton - sacked by Brighton - met for a pre-season friendly in the summer of 2017. The 33-year-old Kompany, who joined in 2008 from Hamburg, felt it was the best triumph of his storied City career.

On Gambhir’s ‘filth’ tweet, Kejriwal responds with a defamation notice
Gambhir has rejected the allegation of circulating the derogatory pamphlet, saying that he would "quit politics" if proven guilty. Gambhir, however, denied the allegations that he got the pamphlet distributed.

China, USTrade Talks End With No Agreement
But Liu told reporters the talks had been "productive" and said the two sides would meet again in Beijing at an unspecified date. A White House official confirms that trade talks between Chinese and USA negotiators have concluded for the day.

Rihanna, LVMH launch new fashion brand 'Fenty'
Furthermore, it illustrates the potential still to be tapped by famous figures and the loyal followings they've cultivated. We can expect to see the first looks from her LVMH-incubated brand, now dubbed Fenty Maison , later in May.

Constance Wu clarifies angry tweets following 'Fresh off the Boat' renewal
She also wrote the phrase "dislike" under a post on the show's official Instagram page announcing the renewal. Wu has denied that the renewal of " Fresh Off the Boat " caused her to be upset on social media. "Thank you.