Global Markets Tread Cautiously Amid Ongoing Trade Tensions

Asian Stocks May Struggle on Trade War Concerns: Markets Wrap

Asian stock markets were poised to struggle on Monday, as investors remained concerned about the escalating trade tensions between the United States and China.

The Shanghai Composite Index fell 0.5% in early trade, while the Nikkei 225 Index in Japan dropped 0.2%. Hong Kong's Hang Seng Index slid 0.3%, and the Kospi Index in South Korea lost 0.1%.

The concerns came after the United States imposed 25% tariffs on $16 billion worth of Chinese goods on Friday, prompting China to retaliate with duties on $16 billion worth of US goods, including pork, soybeans, and whey.

The ongoing trade tensions have been weighing on investor sentiment, with global markets experiencing a sell-off in recent weeks. The S&P 500 Index in the United States fell 1.3% on Friday, while the Dow Jones Industrial Average lost 1.2%.

Meanwhile, the Australian Securities Exchange (ASX) 200 Index fell 0.4% in early trade, while the New Zealand S&P/NZX 50 Index dropped 0.3%.

In currency markets, the Chinese yuan weakened to a one-month low against the US dollar, while the Japanese yen strengthened against the greenback.

In commodities, Brent crude oil prices fell 0.4% to $73.45 a barrel, while gold prices rose 0.2% to $1,322.20 an ounce.

The ongoing trade tensions have been a major theme in global markets this year, with investors seeking safe-haven assets such as bonds and the US dollar. The tensions have also been affecting US-China trade talks, which have been ongoing since March.