BANGKOK (AP) — Asian shares tumbled on Monday as escalating trade tensions with China shattered a monthslong calm on Wall Street.
U.S. stocks skidded on Friday after President threatened to signaling more trouble ahead between the two biggest economies. He was responding to restrictions Beijing is imposing on which are materials that are critical for the manufacturing of everything from consumer electronics to jet engines.
But U.S. futures advanced, with the contract for the S&P 500 gaining 1.2% while that for the Dow Jones Industrial Average gained 0.8%.
its global exports rose 8.3% in September from a year earlier, the strongest growth in six months and further evidence that its manufacturers are shifting sales from the U.S. to other markets.
Exports to the U.S. tumbled 27% year-on-year last month, customs data showed.
In Hong Kong, the Hang Seng sank 3.5% to 25,374.00.
Most other major regional markets logged losses of more than 1%.
The Shanghai Composite index dropped 1.3% to 3,846.25 and the Kospi in South Korea gave up 1.7% to 3,550.32.
Australia’s S&P/ASX 200 declined 0.9% to 8,882.60. Taiwan’s Taiex shed 1.7% and India’s Sensex was down 0.5%.
Markets in Tokyo were closed for a holiday.
On Friday, the S&P 500 sank 2.7% in its worst day since April, closing at 6,552.51. The Dow Jones Industrial Average dropped 1.9% to 45,479.60, and the Nasdaq composite lost 3.6% to 22,204.43.
The setback reflected signs of a re-escalation of the trade war.
“We have been contacted by other Countries who are extremely angry at this great Trade hostility, which came out of nowhere,” Trump wrote on Truth Social, alluding to Beijing. He also said “now there seems to be no reason” to meet with China’s leader, Xi Jinping, after as part of an upcoming trip to South Korea.
Roughly six out of every seven stocks within the S&P 500 fell. Nearly everything weakened, from Big Tech companies like Nvidia and Apple to stocks of smaller companies looking to get past uncertainty about tariffs and trade.
The market may have been primed for a slide. U.S. stocks were already facing criticism that their prices had shot too high following the S&P 500’s nearly relentless 35% run from a low in April. The index, which dictates the movements for many 401(k) accounts, is still near its set earlier in the week.
Critics say after prices rose much faster than corporate profits. Worries are , where pessimists see echoes of the 2000 dot-com bubble that imploded. For stocks to look less expensive, either their prices need to fall, or companies’ profits need to rise.
Some of Friday’s strongest action was in the oil market, where the price of a barrel of benchmark U.S. crude sank 4.2% to $58.90.
It fell as a in Gaza. An end to the war could remove worries about disruptions to oil supplies, which had kept crude’s price higher than it otherwise would have been.
Losses accelerated following Trump’s tariff threat, which could gum up global trade and lead the economy to burn less fuel.
Brent crude, the international standard, dropped 3.8% to $62.73 per barrel. However, early Monday it was trading 92 cents higher at $63.65 per barrel. U.S. benchmark crude oil gained 88 cents to $59.78 per barrel.
In the bond market, the yield on the 10-year Treasury sank to 4.05% from 4.14% late Thursday.
It had already been lower before Trump made his threats, as a report from the University of Michigan suggested that sentiment among U.S. consumers remains in the doldrums.
In other dealings early Monday, the dollar fell to 151.87 Japanese yen from 151.89 yen late Friday. The euro climbed to $1.1627 from $1.1614.
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