In Australia, the S&P/ASX 200 added 0.34 percent amid gains in banks and resources plays. Mining major BHP was up 1.84 percent, with banks also trading higher in the morning.
The moves higher came after Friday’s developments on the trade front when U.S. tariffs on $34 billion in Chinese goods took effect, ramping up the country’s ongoing trade spat with China.
China followed up by promptly imposing duties of its own on the same value of U.S. products. China’s Ministry of Commerce said it had no choice but to respond to the U.S. after the latter “launched the largest trade war in economic history.”
U.S. President Donald Trump said on Friday that an additional $16 billion of Chinese goods would be subject to tariffs in two weeks, and that he was considering further slapping duties on an additional $500 billion in Chinese products.
“Trade talk, which is now becoming trade action, is creating uncertainty and starting to hurt business,” David Lafferty, chief market strategist at Natixis Investment Managers, said in a recent note. “Inflation and higher prices are the least of my worries … Disrupting global supply chains is a bigger risk than the dollar value of the tariffs themselves,” he added.
U.S. stocks had advanced on Friday as better-than-expected jobs data stateside overshadowed tariffs kicking in. The Dow Jones Industrial Average rose 0.41 percent, or 99.74 points, to close at 24,456.48, the S&P 500 gained 0.85 percent to end at 2,759.82 and the Nasdaq composite surged 1.34 percent to finish at 7,688.39.
The U.S. economy added 213,000 jobs in June, topping the 195,000 forecast in a Reuters poll. Wage growth, however, slightly missed expectations.
“Overall, it was a solid report and there is no evidence of any let-up in labor market strength … The momentum in the jobs data is still consistent with the Fed hiking in September,” ANZ analysts said in a note.
In corporate news, smartphone maker Xiaomi debuts for trade in Hong Kong on Monday after the company priced its initial public offering at 17 Hong Kong dollars ($2.17) per share, the low end of an indicative range. Xiaomi said last month that it did not have a time frame for its share offering on the mainland.
Elsewhere, British Prime Minister Theresa May last week won agreement from her cabinet to remain in a free trade area for goods with the European Union, which analysts see as a “soft Brexit.” The pound last traded at $1.3293.
The dollar was broadly softer, with the dollar index at 93.968 at 8:00 a.m. HK/SIN, compared to levels above the 94 level last week. Against the yen, the dollar was mostly steady at 110.41.
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