Stocks in Asia Pacific slid Monday morning amid uncertainties on the U.S.-China trade front, after Chinese freight tariffs were raised last Friday.
The Nikkei 225 in Japan declined by 0.9% in the early stages of the trade, with the shares of the Softbank Group index weighing more than 3%. Also the Topix index slipped by 0.69%.
In South Korea, Kospi lost 0.77%, while the Australian ASX 200 lost 0.48%.
The markets of Hong Kong are closed on Mondays for a holiday. Meanwhile, futures indicated significant declines on Wall Street when they open later Monday. Starting at 8:01 pm ET Sunday, futures imply an opening drop of over 200 points for the Dow Jones Industrial Average.
On Friday, mainland China shares rose despite US rate increases from 10% to 25% on Chinese assets for $ 200 billion.
In an interview with Fox News on Sunday, White House economic adviser Larry Kudlow said that US President Donald Trump and Chinese President Xi Jinping will probably meet at the upcoming G-20 summit in June in Japan .
Kudlow said that the chances of such a meeting "were pretty good", but he said that there are no "concrete and defined plans" for when the US and Chinese negotiators will meet again.
Trade negotiations between US and Chinese negotiators stopped on Friday without a trade agreement. The talks took place under the shadow of Trump's threat to double the duty to 25% on $ 200 billion of Chinese goods.
"It remains to be seen how the markets will react this week once they are back in full swing, but the news on the commercial pricing front is anything but reassuring," David de Garis, director and senior economist at National Australia Bank, wrote in a morning note.
The US dollar index, which replicates the greenback against a basket of its peers, was at 97.290 after having climbed the highs above 97.6 last week.
The Japanese yen, widely considered a safe-haven currency, is trading at 109.60 against the dollar after strengthening from levels above 110.4 in the previous trading week. The Australian dollar fell to $ 0.6981, after peaking above $ 0.702 last week.
Oil prices fell in the morning after Asian trading opening hours, with the international benchmark for Brent oil futures falling 0.44% to $ 70.31 a barrel and US crude fell of 0.71% to 61.22 dollars per barrel.
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