In Asian Equity Markets indices fell on Monday as investors digested the escalation in trade tensions between the U.S. and China after both countries announced tariffs last week. Japan’s Nikkei 225 declined 0.85 percent, with all sectors trading lower. Shippers led losses in the morning, with the Topix sea transport subindex sliding 3.46 percent. Also denting sentiment was a magnitude-6.1 earthquake in Osaka in western Japan on Monday, hitting the shares of utility companies headquartered in the Kansai region. South Korean markets recorded similar losses, with the benchmark Kospi down 0.8 percent.

In Currency Markets the US dollar edged up towards a seven-month high against a basket of its peers on Monday after the market digested a flurry of news, although U.S.-China trade tensions slowed its gains. The dollar was down 0.1 percent at 110.500 yen after brushing a three-week high of 110.905 on Friday. The euro slipped 0.2 percent to $1.1585, extending losses after sliding 1.3 percent the previous week after the ECB signaled it will keep interest rates at record lows well into next year. The Australian dollar was 0.15 percent lower at $0.7426 and the New Zealand dollar lost 0.35 percent to $0.6922.

In Commodities Markets U.S. oil prices fell on Monday after China threatened duties on American crude imports in an escalating trade dispute with Washington. U.S. West Texas Intermediate (WTI) crude futures were at $63.84 a barrel, down $1.22, or 1.9 percent, from their last settlement. In an escalating spat over the American trade deficit with most of its major trading partners, including China, U.S. President Donald Trump last week pushed ahead with hefty tariffs on $50 billion of Chinese imports, starting on July 6. China on Friday said it would retaliate by slapping duties on American export products, including crude oil.

In US Equity Markets stocks ended lower on Friday, capping a day of heavy trading with investors mostly pulling back from initial concerns over an escalating trade dispute between the United States and China. The S&P 500 lost 0.11 percent, to 2,779.42 and the Nasdaq Composite fell 0.19 percent, to 7,746.38. Of the 11 major sectors of the S&P 500 six ended the day in negative territory. Of the 11 major sectors of the S&P 500 six ended the day in negative territory. Shares of Boeing Inc, the single-largest U.S. exporter to China, fell 1.3 percent. For the week, the Dow was down 0.9 percent while the S&P 500 rose 0.01 percent and the Nasdaq gained 1.3 percent, its fourth consecutive weekly advance.

In Bond Markets longer-dated Japanese government bond prices dipped on Monday as the market braced for an upcoming auction of 30-year debt, although a drop in Tokyo shares helped curb losses. The 20-year JGB yield rose half a basis point to 0.505 percent. September 10-year JGB futures moved in a tight range and last traded at 150.77. The finance ministry will issue 700 billion yen ($6.34 billion) of 30-year JGBs on Tuesday.