Asian markets tumbled on Tuesday as back-and-forth exchanges over possible higher US tariffs for the auto sector deepened concerns that a trade war is brewing.
The US and China, the world's two largest economies, are set to impose tariffs on billions of dollars of each other's products starting Friday.
Hong Kong's Hang Seng, reopening after a market holiday on Monday, plunged 3.0 per cent to 28,091.91 as investors reacted to weaker than expected economic data. Japan's benchmark Nikkei 225 index lost 0.8 per cent to 21,631.27 and South Korea's Kospi fell 0.3 per cent to 2,264.86. The Shanghai Composite index sank 1.3 per cent to 2,740.26. Australia's S&P/ASX 200 bucked the regional trend, adding 0.4 per cent to 6,205.10, ahead of an interest rate decision by the Reserve Bank of Australia later Tuesday. The rate is expected to remain unchanged at 1.5 per cent. Taiwan's benchmark fell and Southeast Asian indexes were mixed.
Major US benchmarks closed higher Monday, buoyed by a last-minute rally from technology companies. The S&P 500 index rose 0.3 per cent to 2,726.71 and the Dow Jones Industrial Average gained 0.2 per cent to 24,307.18. The Nasdaq composite jumped 0.8 per cent to 7,567.69. The Russell 2000 index of smaller-company stocks rose 0.7 per cent to 1,655.09.
The European Union on Monday slammed the Trump administration for considering higher tariffs on auto imports, saying they could lead to global retaliation against some US$300 billion ($447b) in US goods.