U.S. stock futures and stock benchmarks in Asia continued their declines late Monday into Tuesday, with Dow futures tumbling as much as 1.77% and Japan's Nikkei 225 down 2.42%.
The moves followed a bruising day on Wall Street, when major indexes posted their worst day of the year on Monday as China hit back at President Donald Trump's move to accelerate tariffs on China-made goods by allowing the yuan to slip to the lowest levels against the dollar in more than a decade.
In early trade Tuesday, the Nikkei was down 501.66 to 20,218.63. In Shanghai and Singapore, stocks were down more than 1%. Hong Kong's Hang Seng was off 767.26 points, or 2.85%, to 26,151.50.
Hong Kong's finance chief on Monday urged protesters to step back from their destabilizing actions, according to a story in the South China Morning Post, warning that the city's economy could plunge into recession if it continues to be rocked by the global trade war and escalating turmoil in the streets.
Paul Chan Mo-po issued the grave warning as Hong Kong suffered massive flight cancellations, commuter chaos, traffic jams and service disruptions as thousands of people joined the largest citywide strike in decades to protest against the government's extradition bill crisis, according to the SCMP report.
The yuan steadied Tuesday as China's central bank set its currency slightly stronger than expected, Bloomberg News reported, suggesting officials want to slow the pace of declines in the yuan. The People's Bank of China set its daily reference rate at 6.9683 per dollar, compared with an estimated 6.9871 according to the average of forecasts by 19 traders and analysts in a Bloomberg survey. The central bank also announced the planned sale of bills in Hong Kong. The offshore yuan briefly erased losses, Bloomberg reported.
In overnight trade, U.S. stock futures fell, while gold rose. Shortly after 9 p.m. Eastern, Dow futures were down 0.99% to 25,296, having pared earlier losses; Nasdaq futures were off 1.03% to 7,309.00 and S&P futures fell 0.98% to 2,802.50. Gold futures were up 0.30% to 1,480.90. Crude oil futures edged lower.
The major U.S. equity indexes posted their worst day of the year on Monday as China hit back at President Donald Trump's move to accelerate tariffs on China-made goods by allowing the yuan to slip to the lowest levels against the dollar in more than a decade.
The Dow Jones Industrial Average, which was off more than 950 points during the day, finished Monday down 767 points, or 2.9%, to 25,717. The S&P 500 fell 2.98%, and the Nasdaq dropped 3.47%.