In China, investors braced for a tough day as markets reopened after an extended weekend, absorbing the impact of Beijing’s retaliatory tariffs on US goods.
A gauge of Chinese stocks listed in the US plunged 8.9% on Friday, reflecting fears of further trade tensions. The Hang Seng China Enterprises Index, (^HSCE) one of the year’s top performers, has begun a sharp pullback.
Meanwhile, Nikkei (NKD=F) futures fell nearly 4% to 31,080, putting it at its lowest levels since 2023.
China’s swift tariff response, following President Trump’s tariff hike on the country, raised global recession fears. Goldman Sachs downgraded its targets for Chinese equity indices, with the MSCI China (CHH=F) Index target cut to 81 from 85.