Asian shares dip amid fears of more protectionist measures from US

Asked whether investors should be concerned about the prospects of a currency war Mnuchin said “no,” declining to elaborate

Asked whether investors should be concerned about the prospects of a currency war Mnuchin said “no,” declining to elaborate

Mr. Trump responded that he is "ready to go to 500", referring to the approximate dollar value of Chinese goods exported to the USA a year ago.

Recently, the People's Bank of China stepped up liquidity injection measures and lowered reserve requirement ratios for three times this year. The major traded 0.1 percent up at 1.3137, having hit a low of 1.2957 on Thursday; it's lowest since September 2017.

Gold is also cushioned by technical support around $1,200-$1,220, including its July 2017 low of $1,204.90, the 50 percent Fibonacci retracement of the 2016 rally and the psychologically significant level of $1,200.

But the USA president said he was ready to hit all Chinese exports or goods worth 500 billion United States dollars.

The Chinese currency fell sharply, reaching its lowest value in the past year, which is great relief from exporters, but risking to raise Donald Trump's anger within the trade war.

Trump's complaints about the Federal Reserve interest rate hikes and a strong dollar saw the U.S. currency fall late last week but the decline was unlikely to continue, analysts said. The Bloomberg Dollar Spot Index slid as much as 0.74pc, its biggest intraday decline since March, before paring its loss to around 0.6pc. Japan's Nikkei stumbled 1.4 percent, Australian shares and South Korea's KOSPI index fell 0.9 percent each.

Asian stocks took Wall Street's cue on Monday, with MSCI's broadest index of Asia-Pacific shares outside Japan falling 0.2%. The president on Friday also accused China and the Euro area of manipulating their currencies, and complained that a rising dollar is blunting America's "competitive edge".

Oil price gains were capped however by oversupply fears.

Roberto Perli, a partner at Cornerstone Macro LLC and a former Fed economist, says Trump's criticism of Fed rate hikes actually may have improved the likelihood that policy makers tighten as planned, to drive home their independence. United States crude was last off 14 cents at $68.12 a barrel after posting its third straight weekly loss. Brent eased 17 cents to $72.90.

The US leader is already embroiled in a messy trade dispute with China and Europe, while negotiations with Canada and Mexico to revamp the North American Free Trade Agreement have stalled.

Platinum gained 0.1 percent to $827.40 an ounce after last week touching its lowest since 2008, while palladium rose from last week's one-year low and was up 1.4 percent at $906.48.

Spot gold was down 0.5 percent at $1,225.41 an ounce by 1441 GMT, close to last Thursday's low of $1,211.08, while US gold futures for August delivery were down 0.5 percent at $1,225.50.

In early trade Tuesday, the yield on 10-year Chinese government bonds jumped 5 basis points to 3.57 percent, and were last seen at 3.56 percent.

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