China stocks were poised for the worst one-session loss in more than two years, as Asian stock markets have plunged on fears trade negotiations between the US and China were on the verge of collapse.
Recently, President Donald Trump tweeted that he would raise tariffs on US$200bn of Chinese goods from 10 to 25 per cent this week, apparently taking Chinese officials by surprise. In response, China may withdraw from the next round of trade talks scheduled to begin soon in Washington. US officials had indicated progress had been made at talks last week in Beijing, and said it was possible a deal could be reached by the end of this week.
But the sudden hard line by Trump spooked investors. US stock market futures sank. The Singapore index, which is highly exposed to the US-China trade tensions, led losses in the region, falling as much as 3.4 per cent to 3,278.15, its lowest level since 2 April.