Asia stocks set to drop on fresh trade strife

SINGAPORE: Asian stocks looked set for declines Tuesday after a fall in their US counterparts on a report the Trump administration was considering extending tariffs to all Chinese imports.

The dollar rallied and Treasuries were little changed.

Futures on Japanese and Australian equity benchmarks pointed lower, while they were little changed in China and Hong Kong as the S&P 500 Index pared a drop in the final 15 minutes of trading.

The Dow Jones Industrial Average slid more than 500 points at its worst, dipping into a correction, while the Nasdaq 100 Index tumbled to the lowest level since May.

The S&P 500 and Nasdaq indexes are on track for the steepest monthly declines of the record-long bull market.

Selling intensified after Bloomberg reported the US is preparing to announce by early December tariffs on all remaining Chinese imports if talks next month between presidents Donald Trump and Xi Jinping fail to ease the trade war.

That stoked anxiety in markets already under pressure by concerns from peak earnings growth to the end of easy money and rising rates. More than US$8 trillion (RM33.45 trillion) has been wiped off of global equities during a sell-off that’s now a month old.

Elsewhere, the euro fell as German Chancellor Angela Merkel said she will quit as head of her party after nearly two decades, though she intends to see out her term as head of state.

The pound declined as UK Chancellor of the Exchequer Philip Hammond delivered the country’s budget.

Oil dropped for the first time in four sessions as some of the world’s biggest crude exporters delivered conflicting signals about global supply trends.