In Asian Equity Markets Chinese markets led losses in Asia on Tuesday after U.S. President Donald Trump fired a fresh salvo in the ongoing trade spat between the U.S. and China. Greater China markets fellon the back of that news. Hong Kong’s Hang Seng Index fell 1.9 percent while on the mainland, the Shanghai composite fell 2.49 percent. Other Asian markets were mixed, with Japan’s Nikkei 225 lower by 0.87 percent and South Korea’s Kospi declining 0.65 percent. Australian stocks, however, shrugged off those concerns to tack on 0.37 percent.

In Currency Markets the US dollar fell against the yen in early Asian trade on Tuesday after U.S. President Donald Trump’s threats of more tariffs on China raised worries about an escalating trade war between the world’s two largest economies. The Japanese yen strengthened to 110.02 against the dollar, up as much as 0.47 percent on the day, after President Trump threatened to impose a 10 percent tariff on $200 billion of Chinese goods, fueling trade war worries with Beijing.

In Commodities Markets oil prices fell on Tuesday on expectations that producer cartel OPEC and key ally Russia will gradually increase output after withholding supplies since 2017. Brent crude futures were at $74.90 per barrel, down 44 cents, or 0.6 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $65.55 a barrel, down 30 cents, or 0.5 percent. Following a sharp increase in crude prices from their sub-$30 per barrel lows in 2016, the group on June 22 will meet in Vienna, Austria, to discuss forward policy.

In US Equity Markets the Dow and S&P were modestly lower on Monday, having recovered from earlier lows, as gains in energy shares helped curb declines stemming from trade war concerns after China’s retaliation to U.S. tariffs. The S&P 500 lost 0.29 percent, to 2,771.58 and the Nasdaq Composite ended flat at 7,739.71. The consumer staples index fell 1.5 percent, with tobacco major Philip Morris down 2.4 percent. Tobacco is among the 545 U.S. goods that China plans to impose tariffs on as of July 6.

In Bond Markets U.S. long-dated Treasury yields drifted higher on Monday, as Wall Street shares trimmed losses, in a lull after a hectic week when the Federal Reserve struck an upbeat tone on the U.S. economy. U.S. 10-year yields closed at 2.927 percent, from Friday’s 2.924 percent. U.S. 30-year yields rose to 3.056 percent, compared with 3.047 late on Friday.  Yields had fallen earlier, in line with U.S. stocks, as investors worried about an escalating U.S.-China trade war.