Report Of More Trump Moves Spooks Investors

Hong Kong and mainland Chinese stocks fell on Monday as concerns about a trade war overshadowed easing measures by the People's Bank of China.

The Hang Seng Index slipped 1.3 percent, to close at 28,961.

On the mainland, the Shanghai Composite Index gave up 1.1 percent, to 2,859 and the Shenzhen Composite Index lost 0.6 percent, to 1,587.

Most Asian markets fell, with Donald Trump threatening fresh tariffs on European cars and reports he is considering curbs on Chinese investment in the US.

Tokyo ended 0.8 percent lower. Sydney lost 0.2 percent and Singapore shed 0.8 percent. Taipei and Manila were both 1 percent lower, while Seoul and Wellington barely moved.

The People's Bank of China on Sunday said it would lower the amount of cash lenders must keep in reserve as it looks to soothe investors worried about a trade conflagration.

The cut – which will free up more than US$100 billion for banks – is set to come into effect on July 5, the day before new US tariffs are due to be imposed on Chinese imports worth US$34 billion.

On currency markets the Turkish lira, which had lost some 20 percent in value against the dollar this year, surged about three percent after President Recep Tayyip Erdogan scored a decisive election victory, soothing worries of a prolonged period of political uncertainty. (AFP)