Stocks plunge on US-China tension

beijing — Global stock markets sank on Monday and oil prices were mixed amid simmering worries about US-Chinese trade tensions.

The S&P 500 index shed 27 points, or 1 per cent, to 2,727 as of 10am Eastern time. The Dow Jones Industrial Average lost 275 points, or 1.1 per cent, to 24,303. The Nasdaq composite fell 107 points, or 1.4 per cent, to 7,585. The Russell 2000 index of smaller-company stocks slid 21 points, or 1.3 per cent, to 1,663.

Germany’s DAX fell 1.3 per cent to 12,414 and London’s FTSE 100 gave up 1.4 per cent to 7,575. France’s CAC 40 shed 0.8 per cent to 5,343. The Shanghai Composite Index fell 1.1 per cent to 2,859.34 and Hong Kong’s Hang Seng lost 1.3 per cent to 28,961.39. Tokyo’s Nikkei 225 shed 0.8 per cent to 22,338.15 and Seoul’s Kospi was flat at 2,357.88. Sydney’s S&PASX 200 lost 0.2 per cent to 6,210.40 and India’s Sensex retreated 0.3 per cent to 35,600.41.

Benchmarks in Taiwan and Southeast Asia declined while New Zealand was unchanged.

The Wall Street Journal reported the Trump administration plans to impose curbs on Chinese investment in American technology companies and high-tech exports to China. The newspaper, citing unidentified sources, said the initiatives were aimed at preventing Beijing from moving ahead with plans to develop global competitors in technologies including biotech and electric vehicles.

Beijing freed up about $100 bil- lion for additional bank lending in a move financial analysts said might help to reassure investors rattled by trade tensions with Washington. The cut in the amount of money banks are required to hold in reserve, the second this year, is one of a series forecasters had expected before the dispute over China’s trade surplus and technology policy erupted.

The dollar fell to 109.65 yen from 109.91 yen. The euro rose to $1.1689 from $1.1663.