Japanese shares shed more than 2% on Monday, with China-related firms leading the losses after a fresh escalation in the Sino-U.S. trade war knocked global equities markets.

The Nikkei share average fell as much as 2.6% to 20,173.76, its lowest level since Aug. 6, before ending the morning session at 20,258.92, 2.2% lower on the day.

China on Friday imposed tariffs on about $75 billion in imports from the United States including some agricultural products, crude oil and small aircraft.

Hours later, U.S. President Donald Trump heaped an additional 5% duty on some $550 billion in targeted Chinese goods in the latest tit-for-tat escalation between the world’s largest economies.

The broader Topix shed 1.8% to 1,475.21 by the midday break, with all of Tokyo’s 33 subindexes falling.

Source : Reuters