Hong Kong's Hang Seng Index tanked nearly 3%, while China's Shanghai Composite Index fell 1.2%. Japan's Nikkei 225 tumbled 2.2%, and South Korea's Kospi declined 1.7%.
"Risks to the global economy and markets have increased" following the latest escalations, wrote Mark Haefele, global chief investment officer of UBS Wealth Management, in an overnight research note.Earlier this month, US President Donald Trump announced in a tweet a new 10% tariff on an additional $300 billion in Chinese goods to be imposed September 1, though the import tax on some of those goods was later delayed.
Chinese state-run media added another layer to the tensions this weekend. The country"is capable of fighting until the end if some people in the United States insist on playing a zero-sum game," read an opinion piece published Saturday in People's Daily, the ruling Communist Party's official newspaper.
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