TOKYO/SYDNEY (Reuters) - Asian shares fell on Monday after U.S. President Donald Trump cranked up trade tensions by going ahead with tariffs on Chinese imports, prompting Beijing to immediately respond in kind.
Fears of a global trade war added to pressure on oil prices, which extended Friday's big fall, while the dollar retreated from near 3-week highs against the safe haven yen JPY=.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS skidded 0.4 percent to its lowest level since May 31.
Financial markets in China and Hong Kong were closed for Dragon Boat festival holiday. South Korea's Kospi index .KS11 slipped 0.5 percent while Australian shares eased 0.1 percent.
Japan's Nikkei .N225 sank 0.9 percent as worries over growing protectionism overshadowed stronger-than-expected export data.
U.S. E-mini S&P futures ESc1 were down 0.5 percent in early trade, suggesting a weaker start on Wall Street.
“The on-again off-again possible global trade war is looking to be back on again as the U.S. and China announced tariffs on each other’s imports,” said Nick Twidale, Sydney-based analyst at Rakuten Securities Australia.
“This looks set to be the main theme that investors will focus on...with any further escalation in tension adding to the downside risk.”
Trump announced hefty tariffs on $50 billion of Chinese imports on Friday, laying out a list of more than 800 strategically important imports from China that would be subject to a 25 percent tariff starting on July 6, including cars.
China said it would respond with tariffs “of the same scale and strength” and that any previous trade deals with Trump
