US-china trade war battered Asian shares

Vastavam web: Fears of a full-blown trade war between the United States and China battered Asian shares again on Monday, keeping the safe haven yen near a 16-month peak as investors fretted over the fate of global growth.Japan’s Nikkei .N225 stumbled 0.9 percent to a near six-month trough in early trade, due in part to worries over the stronger yen squeezing export earnings.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.1 percent for their fourth consecutive day in the red.The index is headed for its first quarterly loss since late 2016 as the risk of faster U.S. rate rises and the specter of a trade war spooked investors who had enjoyed a multi-year bull run.“Asia ex-Japan equity outperformance is in part a function of faster growth and capital inflows; both clearly at risk in a trade war.”

China urged the United States to “pull back from the brink” as the world’s two largest economies moved closer to a trade war with potentially dire consequences for the global economy.“Tariffs on China will very likely cause collateral damage in Asia, particularly to smaller open economies,” said Alex Wolf, Hong Kong-based senior emerging markets economist at Aberdeen Standard Investments.

“A greater share of value-added in U.S. computer imports comes from Asia ex-China than from China itself,” Wolf added.Indeed, the Korean won KWR= held near one month lows on the U.S. dollar while South Korea’s benchmark share index .KS11 was off 0.3 percent after being bitterly hammered on Friday.