Asia markets slide as U.S - China trade tensions escalate

October 13, 2025 (MLN): Asia-Pacific markets tumbled on Monday as renewed trade tensions between the United States and China weighed heavily on investor sentiment.

The sell-off followed a weekend of escalating rhetoric and fresh trade measures from both sides, reigniting fears of a prolonged economic standoff between the world’s two largest economies.

Hong Kong’s Hang Seng Index sank 3.41%, while the CSI 300 of mainland China dropped 1.76%.

The offshore yuan edged up 0.1% to 7.1267 per dollar, and the 10-year Chinese government bond yield slipped more than 5 basis points to 1.752%.

Beijing struck a defiant tone on Sunday, declaring it was “not afraid of” a trade war after former U.S. President Donald Trump vowed to impose new 100% tariffs on Chinese imports, CNBC reported.

The move followed China’s announcement of fresh export restrictions on rare earth minerals, prompting China’s Ministry of Commerce to accuse Washington of a “textbook double standard.”

According to Goldman Sachs, the recent policy shifts may indicate China’s intent to leverage the dispute to extract greater concessions from the U.S.

Meanwhile, Chinese customs data revealed that exports surged 8.3% in September from a year earlier  the fastest pace in six months  while imports rose at their strongest rate in over a year, surpassing economists’ forecasts despite the ongoing tensions.

Elsewhere in the region, Australia’s S&P/ASX 200 slid 0.68%, South Korea’s Kospi plunged 2.35%, and the Kosdaq lost 2.24%.

Singapore’s benchmark index fell as much as 1.5%, while Japan’s markets remained closed for a public holiday.

On the U.S. front, markets ended sharply lower Friday amid growing trade anxiety.

The Dow Jones Industrial Average fell 878.82 points (1.9%) to 45,479.60, the S&P 500 shed 2.71% to 6,552.51, and the Nasdaq Composite dropped 3.56% to 22,204.43  its steepest one-day decline since April 10.

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