Asian stocks retreat on trade concerns, Japan's Nikkei 225 back into ¥22,600.00

Asian equities taking a step back in trade war ramp-up.
China market holidays are seeing thin volumes for Monday.

Joshua Gibson FXStreet

Asian stocks are falling back on renewed trade war fears, and Japan's Nikkei 225 index is backing into 22,600.00.

US President Donald Trump unveiled his latest round of tariffs on Chinese imported goods late last week, and China was quick to retaliate with their own list of targeted goods, and the continued brinkmanship over tariffs has left global markets bracing for yet another run-up towards a trade war. Equities fell back on the news, and are continuing to slide as traders jostle for positioning ahead of a potential series of tit-for-tat tariffs between the US and China as US President Trump picks trade fights with key US trade allies, including the EU and Canada.

Australian ASX shares are flat for Monday, while the Shanghai Composite and Hong Kong's Hang Seng are both back -0.73% and -0.43% respectively, though traders should note that China and Hong Kong markets are dark today for the Dragon Boat Festival.

Nikkei 225 levels to watch

Japan's major index capped off at May's high of 23,044.00 and is being turned away, forced back into 23,600.00, and the index could soon be facing June low near 22,080.00, with further support from May's low nearby at 21,900.00.

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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