Markets hit by fresh trade fears after Trump comments

Despite Trump tweet Ford says it won’t make hatchback in US	 	 	 			KAREN BLEIER  AFP  Getty Images

Despite Trump tweet Ford says it won’t make hatchback in US KAREN BLEIER AFP Getty Images

Ford Motor Company on Sunday pushed back against President TrumpDonald John TrumpTiger Woods calls Nike's Kaepernick campaign a "beautiful spot" EPA lost more than 1,500 workers in first 18 months of Trump administration: report Trump: Races that GOP was not thinking about winning "are now very close" MORE's claim that it can build a China-made hatchback model in the USA after it scrapped plans to sell it domestically because of the president's tariffs. The currency fell 1.3 percent on Friday and was last at Dollars 0.7112. "You are back to the highly politically charged question - is this currency manipulation or not?"

"The days of the USA being ripped-off by other nations is OVER!"

Market prices are reflected in a glass window at the Tokyo Stock Exchange (TSE) in Tokyo, Japan, February 6, 2018.

MSCI's broadest index of Asia-Pacific shares outside Japan was last down 0.7 percent, piling on losses from last week when it dropped 3.5 percent for its worst weekly showing since mid-March. Beijing has threatened to retaliate against any measures out of Washington. Computer and phone makers are involved in a global supply chain that includes Chinese manufacturing, and that can't be easily excluded without harm to United States companies, Intel said in a letter to the trade representative. Cell phones, the biggest US import from China, have so far been spared but would be hit if Trump activates the new $267 billion tariff list.

The Hang Seng and CSI 300 indices are both down 1% on the day while the Shanghai Composite is down 0.7% now after the break.

Japan's Nikkei, which had opened lower, ended 0.3 percent higher after revised second-quarter gross domestic product data showed the world's third-biggest economy grew at its fastest pace since 2016.


The greenback has already rallied against a number of emerging markets units - with India's rupee at record lows and the Indonesian rupiah at a 20-year trough - on fears that economic crises in Argentina, South Africa and Turkey could spread globally.

Some Asian economies too are vulnerable, Nomura analysts said in a lengthy report with many countries burdened with high private debt. They also noted a "concentration risk" from some of the world's largest funds' heavy investments in emerging-market assets.

Chinese shares were battered with the blue-chip index off 1.4 percent.

The Australian dollar, a proxy for Chinese growth because of the large amount of metals it sells there, hovered near its lowest in 2 1/2 years and was last at $0.7115.

Oil prices bucked the trend, after three straight days of losses. Brent crude futures LCOc1 added 39 cents to United States dollars 77.22 a barrel.

Spot gold was mostly unchanged at Dollars 1,194.81.

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