China stocks, yuan tumble on Trump’s fresh trade threats

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  • The move marked a major escalation in trade tensions between the world’s two largest economies and a shift in tone from Mr. Trump, who cited progress in talks as recently as Friday.


  • Chinese investors, caught off guard by U.S. President Donald Trump’s tariff threats, dumped stocks and sold the country’s yuan on Monday as a fresh deterioration in Sino-U.S. trade tensions roiled Asian financial markets.
  • China’s major stock indexes extended losses after opening sharply lower. Both the blue-chip CSI300 index and the Shanghai Composite Index tumbled more than 5 percent in morning trade. Hong Kong’s Hang Seng index slumped more than 3 percent.
  • Fanning expectations that the latest trade developments could lead to new monetary easing, China’s central bank said on Monday it will cut reserve requirement ratios (RRRs) for small and medium-sized banks.
  • China’s currency, the yuan, dropped to 6.7980 per dollar in early trade, its weakest level in 3-1/2 months, while 10-year treasury futures for June delivery, the most traded contract, rose 0.3 percent.
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