AP NEWS

Markets Right Now: Asian stocks fall as trade war escalates

May 14, 2019
FILE - In this May 9, 2019, file photo trader Jonathan Corpina works on the floor of the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EDT on Monday, May 13. (AP Photo/Richard Drew, File)

NEW YORK (AP) — The latest on developments in financial markets (all times local):

10:15 p.m.

Shares have opened moderately lower in Asia after a day of heavy losses on Wall Street.

The Shanghai Composite index fell 0.3% while Japan’s Nikkei 225 lost 0.7% early Tuesday. Hong Kong’s Hang Seng slipped 1.5%, catching up after a market holiday on Monday.

Oil prices held steady and the dollar was trading at 109.59 Japanese yen.

Investors appeared to have anticipated the worsening of tensions between the U.S. and China after Beijing announced it was raising tariffs on $60 billion of American imports in response to a U.S. tariff hike last week.

The mild market reaction in Asia followed a miserable day in U.S. markets, where the Dow Jones Industrial Average plunged 617.38 points, or 2.4%, to 25,524.99.

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4 p.m.

Stocks are closing sharply lower as an escalating trade war between the U.S. and China rattles investors.

Technology companies, which do a lot of business with China and would stand to lose greatly in an extended trade battle, fell far more than the rest of the market Monday.

Apple gave up almost 6%. Industrial stocks including Deere and Boeing also fell sharply.

Utilities, a haven for fearful investors, were among the few stocks that rose. Prices for other safe-play assets like bonds and gold also rose.

The Dow Jones Industrial Average sank 617 points, or 2.4%, to 25,324.

The S&P 500 fell 69 points, or 2.4%, to 2,811.

The Nasdaq, which is heavily weighted with technology stocks, plunged 269 points, or 3.4%, to 7,647, its biggest drop of the year.

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11:45 a.m.

Stocks are plunging on Wall Street after China said it would retaliate against the U.S. with tariffs, escalating a trade dispute that investors had hoped would go away.

China said Monday it would put levies on $60 billion of U.S. imports after the Trump administration on Friday raised tariffs on $200 billion in Chinese imports from 10% to 25%.

U.S. companies that would stand to lose the most in a prolonged trade war with China led the way lower. Apple fell 5.4% and Caterpillar dropped 5.1%.

Utilities, which investors tend to buy when they are fearful of market turbulence, were the only sector to rise.

The Dow Jones Industrial Average sank 623 points, or 2.4%. The S&P 500 fell 71 points, or 2.5% and the Nasdaq sank 3.3%.

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9:35 a.m.

Stocks are plunging at the open on Wall Street Monday after China announced retaliatory tariffs against goods from the United States.

China plans tariff hikes on $60 billion of U.S. imports after the Trump administration on Friday raised tariffs on $200 billion in Chinese imports from 10% to 25%.

Technology, industrial and consumer-focused companies are bearing the brunt of the losses. Apple is down 4.4% while Caterpillar is off by 4%.

The Dow Jones Industrial is down 470 points, or 1.8%. The S&P is dropping 51 points, or 1.8% and the tech-heavy Nasdaq is down 2.3%.

Oil rose 2.4% to $63.15 a barrel after two Saudi vessels were targeted off the coast of the United Arab Emirates.