Asian stocks fell on Monday as investors supported a week-long market turmoil triggered by President Trump's expected announcement of more tariffs on America's biggest trading partner.
Japan's Nikkei 225 and Taiwan's Thailand One Index each fell by nearly 4%. South Korean stocks fell almost 3%.
Stocks in Hong Kong and mainland China fell by about 1%. Monday's report shows China's export-led industrial sector continues to expand despite Trump's initial tariffs.
The S&P 500 futures settled on Sunday evening, allowing investors to trade benchmark indexes before exchanges resumed in New York in the morning. On Friday, the S&P 500 dropped 2% on concerns about inflation and consumer sentiment.
Since taking office two months ago, Trump has continued to speculate that investors and businesses by accidentally unfolding what he calls “America's first” trade policy.
In some cases, Trump has imposed tariffs to make imports more expensive in industries like automobiles, and argued that trade barriers promote US investment and innovation. He also sought to extract geopolitical concessions from the country using tariffs and their threats. He further surprised investors by saying he didn't care about the fallout of his actions towards the market or American consumers.
Over the weekend, Trump threatened so-called secondary sanctions against Russia if he did not engage in talks to bring about a halt of fighting in Ukraine. The tactics reflect similar sanctions on Venezuela. He said last week that countries buying Venezuela oil could face an additional 25% tariff on imports into the US.
The weekend threat is added to the 25% tariff, which imported cars and some car parts are scheduled to be implemented this week, with the final grace exemption. This adds to the possibility of further retaliation tariffs in other countries, in addition to delaying previous tariffs in Mexico and Canada.
In addition to investor concerns, the release is scheduled for Friday of the monthly report on health in the US job market. It could provide another reading about how the Trump administration's policy pursuit is heavy on the economy.
Keith Bradshire Reports of contributions.
