Asian shares suffer trade whiplash; Wall Street futures rally

Asian stocks dived for cover on Monday after fresh broadsides in the US-China trade war spooked markets with already stretched valuations, though there were signs risk sentiment had steadied with Wall Street futures bouncing.

- 

A holiday in Japan and the United States made for choppy early trading and political uncertainty still shrouded Japanese and European assets.

While US President Donald J. Trump had threatened 100% tariffs on China from Nov. 1, he sounded more conciliatory over the weekend, posting that everything would be fine and the US did not want to “hurt” China.

Beijing defended on Sunday its curbs on exports of rare earth elements and equipment as a response to US aggression, but stopped short of imposing new levies on US products.

“We expect the ultimate resolution will be an extension of the current tariff pause past Nov. 10 along with some new but limited concessions from both sides,” wrote Jan Hatzius, chief economist at Goldman Sachs ina note.