In Asian Equity Markets indices fell Monday morning following an escalation in the U.S.-China trade war late last week. Hong Kong’s Hang Seng index led losses in the region as it fell 3.22% in early trade, following another weekend of violent protests in the city. The Shanghai composite shed about 1.2% and the Shenzhen component slipped 1.15%. he Nikkei 225 in Japan dropped 2.33% in morning trade, while the Topix index declined 1.97%. Losses were also seen over in South Korea, where the Kospi fell 1.59%. Australia’s S&P/ASX 200 shed 1.54%.

In Currency Markets the yen rose on Monday as investors flocked to safe-haven assets after a sharp re-escalation in the U.S.-China trade war, which whacked investor confidence and darkened the global economic outlook. The Swiss franc and gold, two assets sought during times of heightened risk aversion, rose in early Asian trade. The yen rose to 104.46 per dollar, the highest since a flash crash this January, before paring gains to 104.70, up more than 0.5%. In the offshore market, the dollar gained 0.6% to 7.1850 yuan, the highest on record.

In Commodities Markets oil prices fell on Monday, pushing U.S. crude to its lowest in more than two weeks, as an intensifying U.S.-China trade war knocked confidence in the global economy. Brent crude was down 63 cents, or 1.1%, at $58.71 a barrel, having earlier touched $58.24, the lowest since Aug. 15. U.S. oil was down 68 cents, or 1.3%, to $53.49 a barrel, having earlier fallen to $52.96, the lowest since Aug. 9. Concerns about an economic slowdown are being fanned by a ratcheting up of trade tensions between the United States and China.

In US Equity Markets indices lost more than 1% on Friday after President Donald Trump ordered U.S. companies “to immediately start looking for an alternative to China” in response to Beijing’s threat to impose retaliatory tariffs on U.S. goods. The S&P 500 lost 2.59%, to 2,847.25 and the Nasdaq Composite fell 3%, to 7,751.77. All 11 major sectors in the S&P 500 ended the session in negative territory. Specialty retailer Foot Locker Inc fell 18.9% on the heels of disappointing second-quarter results.

In Bond Markets benchmark U.S. Treasury yields fell to their lowest levels in a week on Friday as an escalation in the U.S.-China trade war raised concerns about an economic downturn. The two-year, 10-year yield curve inverted last week for the first time since 2007, a signal that a recession is likely in one to two years. The curve has traded in and out of inversion for the past three days. Benchmark 10-year notes were last up 26/32 in price to yield 1.522%, down from 1.610% late on Thursday. The two-year, 10-year yield curve was last inverted by 0.50 of a basis point.