China's main equity indexes finished lower on Monday and the yuan weakened to a four-month low as investors' hopes for a deal to end an escalating trade war between the United States and China were dashed by signs of a stalemate in trade negotiations.
The benchmark Shanghai Composite index ended the day down 1.2% and the blue-chip CSI300 index lost 1.7%, resuming the previous week's downward slide.
For the month, the Shanghai Composite is down 5.7%, while the CSI300 has lost 6.2%.
The risk of U.S.-China talks breaking down and the two “settling down into an indefinite economic war of attrition is now uncomfortably high,” Arthur Kroeber, founder of Gavekal Dragonomics, said in a note.
Source : Reuters