Asian markets sank after the latest salvo in Trump's trade war with China

Mandy Cheng / AFP / Getty ImagesInvestors are not reacting well to the proposed tariffs.
  • The US government has released a list of $US200 billion worth of Chinese goods that will be subject to new 10% tariffs.
  • The news has not gone down well in Asian financial markets, especially in China.
  • US stock futures point to steep losses when trade resumes later today.

When your largest trading partner proposes increasing tariffs on $US200 billion of your exports, it’s unlikely to go down well with investors.

That’s proved to the be the case today with Chinese stocks and the Chinese yuan both finishing deep in the red.

Here’s the scoreboard for stocks and Chinese yuan as at 5pm in Sydney.

Shanghai Composite 2,777.20 , -1.78%
SSE50 2,431.73 , -1.60%
Shenzhen Composite 1,554.21 , -1.99%
CSI300 3,407.04 , -1.74%
CSI500 5,035.97 , -1.96%
Hang Seng 28,365.72 , -1.49%
USD/CNY 6.6599 , 0.46%
USD/CNH 6.6763 , 0.40%

All major indices on the mainland slumped by between 1.6% to 2%. Hong Kong’s Hang Seng is also under the pump in late trade, sliding close to 1.5%.

As it did leading up to the introduction of $US34 billion worth of tariffs on Chinese imports last week, the Chinese yuan also unraveled in onshore and offshore markets.

After the close of trade on Tuesday, the US government released a gargantuan list of $US200 billion worth of Chinese goods that will be subject to new 10% tariffs.

The tariffs will apply to a huge amount of items including seafood and other fresh goods, according to the list released by US Trade Representative Robert Lighthizer.

China’s Commerce Ministry said in a statement that it could not accept the additional tariffs proposed by the US, adding that it was “shocked” by the decision.

It also said that China would have to respond to the US actions.

With the trade war between the world’s two most powerful nations ratcheting higher, it contributed to broad-based losses across the Asian region.

Most major stock indices are trading or closed well below where they finished Tuesday’s session.

Australia ASX 200 6215.60 , -0.68%
NZ NZX 50 9001.39 , -0.24%
Japan TOPIX 1701.88 , -0.83%
Shanghai Comp 2777.20 , -1.78%
Shenzhen Comp 1554.63 , -1.96%
HK Hang Seng 28213.24 , -1.64%
Sth Korea KOSPI 2280.62 , -0.59%
Sinagpore STI 3244.09 , -0.94%
Taiwan TAIEX 10676.84 , -0.74%
Philippines PSI 7304.5 , 0.98%
Indonesia JKSE 5877.10 , -0.08%
Malaysia KLCI Index 1687.38 , 0.01%
Thailand SET 1639.12 , -0.27%
India Nifty 50 10942.65 , -0.04%
S&P 500 Futures 2774.75 , -0.79%

The US dollar is also stronger against all bar the safe-haven Japanese yen.

AUD/USD 0.7411 , -0.63%
NZD/USD 0.6811 , -0.37%
USD/JPY 110.96 , -0.02%
USD/CNY 6.6612 , 0.48%
USD/CNH 6.6802 , 0.46%
USD/HKD 7.8487 , 0.01%
USD/KRW 1120 , 0.58%
USD/SGD 1.3594 , 0.19%
USD/TWD 30.50 , 0.50%
USD/PHP 53.52 , 0.17%
USD/MYR 4.025 , 0.12%
USD/IDR 14380 , 0.17%
USD/THB 33.27 , 0.30%
USD/INR 68.84 , 0.12%
US Dollar Index 94.19 , 0.04%

Government bond yields are trading lower, reflecting the increase in risk aversion.

United States 2.833% , -0.040%
Japan 0.039% , 0.001%
Australia 2.612% , -0.003%

And commodities are also under pressure.

Brent Crude $78.19 , -0.85%
Gold $1,251.99 , -0.26%
Silver $15.97 , -0.50%

NOW READ: ‘Escalation is here’: The US has chosen a path that rapidly ramps up Trump’s trade war with China

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.