Asian shares extended their losses on Monday as a sharp escalation in the Sino-U.S. trade war kept finiancial markets on edge, while the Japanese yen and bonds held near recent peaks as nervous investors stuck with perceived safe havens.

U.S. President Donald Trump abruptly decided on Thursday to slap 10% tariffs $300 billion in Chinese imports, stunning markets and ending a month-long trade truce. China vowed on Friday to fight back.

MSCI's broadest index of Asia-Pacific shares outside Japan fell for a seventh straight day to a two-month trough of 502.83, down 0.25%, marking the longest stretch of losses since October 2018.

Japan's Nikkei slipped 1.1% to the lowest since early June, while Australian shares were also down for their fourth straight session in the red. South Korea's Kospi tumbled 1.2% to hit the lowest since Dec.2016.

Source : Reuters