SYDNEY (Reuters) - A renewed slide in Chinese shares and a sobering set of factory surveys sucked Asian markets lower on Monday, while the euro and the Mexican peso were both jolted by political developments at home.
E-Mini futures for the S&P 500 ESc1 followed with a loss of 0.5 percent and European bourses were seen opening down.
Shanghai blue chips .CSI300 resumed their slide with a fall of 2.3 percent that soured sentiment across the region. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.6 percent, adding to a 2 percent drop last week.
Japan's Nikkei .N225 shed 2.2 percent to an 11-week low, with a survey of manufacturers showing sentiment had darkened a shade in the face of trade war threats.
The purchasing managers’ index (PMI) still edged higher for June, but exports orders softened.
Tension is growing ahead of a July 6 deadline when the U.S. is due to impose US$34 billion of tariffs on Chinese exports.
“The key risk for the market isn’t that Trump actually implements his trade threats but rather that a protracted period of trade uncertainty begins to weigh on economic activity,” said analysts at JPMorgan in a note.
“The evidence suggesting this is happening is far from conclusive, but ominous data points are accumulating.”
Two surveys of Chinese manufacturing out in the last few days showed a softening in activity, partly due to softness in exports.
A slew of factory readings from across the globe are due on Monday, while the U.S. ISM report is out on Tuesday.
