Chinese shares retreat as Asian stocks hit new lows

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Chinese shares retreated Monday after rebounding last Friday, as part of a wider fall across Asia that saw S. Korean stocks tumble to their lowest point this year.

The benchmark Shanghai Composite Index lost 2.52 percent to end at 2,775.56 points, the lowest in about 28 months.

The Shenzhen Component Index closed 2.13 percent lower at 9,179.8 points.

Chinese stocks went through sharp corrections last week, with the Shanghai index hitting a two-year low. However prices recovered on Friday, after the country's central bank said Thursday it will keep liquidity at a reasonable and ample level and continue to implement a prudent and neutral monetary policy.

The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, lost 1.14 percent to close at 1,588.37 points Monday.

Ahead of Tuesday trading, the central parity rate of the Chinese currency renminbi, or the yuan, weakened 340 basis points to 6.6497 against the US dollar, according to the China Foreign Exchange Trade System.

S. Korean stocks hit 2018-low

S. Korean stocks hit a 2018-low Monday amid growing concerns over US protectionist moves, with the local currency depreciating against the US dollar.

The benchmark Korea Composite Stock Price Index (KOSPI) shrank 54.59 points, or 2.35 percent, to settle at 2,271.54.

It was the lowest close since May 10 last year. During the day alone, about 36 trillion won (32 billion US dollars) worth of market capitalization evaporated.

S. Korea's currency finished at 1,120.0 won against the greenback, down 5.5 won from the previous close.

Hyundai Motor, the country's No.1 carmaker, and its affiliate Kia Motors, presented a written statement to the US Department of Commerce over the weekend, saying that if Washington slaps tariffs of 25 percent on imported cars and auto parts, it would inevitably deal a blow to the US labor market.

Hyundai said it manufactures nearly half of the cars it sells in the US market on US soil, employing over 25,000 US workers.

Nikkei plummets to 10-week low

Tokyo stocks also closed sharply lower Monday, with the benchmark Nikkei stock index plummeting to a two-and-a-half month low, as risk averse investors offloaded issues amid ongoing global trade tensions.

The 225-issue Nikkei Stock Average fell 492.58 points, or 2.21 percent, from Friday to close the day at 21,811.93, marking its lowest closing level since April 13.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, lost 35.60 points, or 2.06 percent, to finish at 1,695.29.

Source(s): Xinhua News Agency