Trade war escalation stirs up uncertainty

ASIAN markets closed mixed on Monday, as investors grappled with the latest round of tit-for-tat tariffs between the United States and China as well as surprisingly positive Chinese factory activity data from a private survey.

With its high exposure to the trade war, Singapore was among the hardest hit, and the Straits Times Index (STI) posted a 0.76 per cent or 23.56 point drop to close at 3,082.96. Australia, Japan and Hong Kong all closed about 0.4 per cent lower.

Said Hussein Sayed, chief market strategist at FXTM: "Even though the trade dispute seemed to be de-escalating last week, helping some risk assets recover, many investors fear that the trade conflict is too far from being entirely resolved. Whether you're equity, fixed income, commodity, or a currency trader, the trade war remains the most significant influence on all these asset classes."