Asian shares retreated sharply on Monday, tracking a broader market pullback as trade tensions between the US and China escalated. Investors shied away from riskier assets, pushing gold and oil prices higher on growing demand for havens.
US stock-index futures followed suit, with S&P 500 contracts down 0.6% and European stock futures falling 0.5%. Hong Kong’s Hang Seng Index slid 1.7% after both Washington and Beijing accused each other of violating their trade pact last month.
Further fueling concerns, President Donald Trump announced a doubling of tariffs on steel and aluminum imports, reigniting fears of a trade war resurgence.
Gold rose 1% as risk-averse investors sought safer ground, while the yen strengthened and the dollar index dipped 0.2%. The 10-year US Treasury yield edged up two basis points to 4.42%, indicating cautious sentiment.
In the commodities space, crude oil climbed 2.8% as geopolitical risks combined with a smaller-than-expected OPEC+ production hike to support prices.
Market participants remain wary as uncertainty around US trade policy, ongoing negotiations with China, and a pending tax bill raise fears of a rising US deficit and the potential for recession.
