Broadcom named strategic vendor for Walmart virtualization solutions
* U.S. stock futures down 0.4%, Hong Kong leads loss in Asia
* U.S. tariffs seen hitting U.S. consumers
* Hong Kong protests escalate
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Hideyuki Sano
TOKYO, Sept 2 (Reuters) - Global stock prices fell on Monday
after the United States and China imposed new tariffs on each
other's goods, reinforcing investors' worries over slowing
global growth.
The E-mini futures for U.S. S&P500 ESc1 fell as much as
1.06% in early trade and last stood down 0.39%.
Japan's Nikkei .N225 shed 0.28%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS dropped 0.3%, led by 0.5% drop in Hong Kong's
Hang Seng .HSI after another weekend of violent
anti-government protests.
But mainland Chinese shares fared better, with the CSI300
index .CSI300 rising 0.3% despite the trade row escalation.
China's State Council said on Sunday it will increase
adjustments of economic policy. A private survey on Monday
showed factory activity unexpectedly expanded in August, though
gains were modest and contrasted with official data that pointed
to further contraction. nL3N25Q0XL
U.S. President Donald Trump slapped 15% tariffs on a variety
of Chinese goods on Sunday - including footwear, smart watches
and flat-panel televisions - while China imposed new duties on
U.S. crude, the latest escalation in a bruising trade war.
A variety of studies suggest the tariffs will cost U.S.
households up to $1,000 a year, with the latest round hitting a
significant number of U.S. consumer goods.
In retaliation, China started to impose additional tariffs
on some of the U.S. goods on a $75 billion target list. Beijing
did not specify the value of the goods that face higher tariffs
from Sunday.
"So far Trump appears defiant though on the tariff hikes,
blaming the Fed and American companies for their difficulties in
dealing with the tariffs," said Shane Oliver, chief economist at
AMP in Sydney.
"There is a long way to go though and re-establishing trust
will be difficult after the experience since mid-last year.
Share markets may still have to fall further to pressure Trump
to resolve the issue."
Many market players say the market's reaction was likely
exaggerated by algorithm-driven players' flows in thin trading
conditions at start of Asian trade on Monday.
Liquidity could be even more limited than usual because of a
U.S. market holiday on Monday.
"(The market move) goes to show you how many data mining
algos are involved with equity linked compared to forex-linked.
Was anyone surprised by these tariffs that took effect
yesterday?" said Takeo Kamai, head of execution at CLSA in
Tokyo.
Tension is also running high in Hong Kong, with police and
protesters clashing in some of the most intense violence since
unrest erupted more than three months ago over concerns Beijing
is undermining democratic freedoms in the territory. Thousands of protesters blocked roads and public transport
links to Hong Kong airport and police made several arrests after
demonstrators smashed CCTV cameras and lamps with metal poles
and dismantled station turnstiles.
China, eager to quell the unrest before the 70th anniversary
of the founding of the People's Republic of China on Oct. 1, has
accused foreign powers, particularly the United States and
Britain, of fomenting the unrest.
Oil prices also fell on Monday.
Brent crude LCOc1 futures fell 0.49% to $58.96 a barrel
while U.S. West Texas Intermediate (WTI) crude CLc1 lost 0.18%
to $55.00.
In the currency market, the dollar dipped slightly against
the yen to 106.12 yen JPY= .
The euro stood almost flat at $1.09905 EUR= , not far from
two-year low of $1.0963 hit in U.S. trade on Friday.