ASIAN MARKETS SINK

ASIAN MARKETS sank on Monday following reports that Donald Trump is planning to hit China  with another round of tariffs, dealing a blow to hopes for talks between the two economic giants.

Traders sent regional equities surging on Thursday and Friday as it emerged that Treasury Secretary Steven Munchin had offered to meet officials from Beijing to avert an all-out trade war.

However, The Washington Post and Wall Street Journal said the president had decided to impose 10 percent levies on $200 billion of Chinese imports and could make an announcement in the coming days.

That would come on top of the $50 billion already announced over the summer and would account for about half of China's exports to the United States/Beijing has threatened to retaliate to any measure.

''Whether this sis little more more than the president using this leverage as a negotiating tactic, China officials will continue to be frustrated,'' said Stephen Innes, head of  Asia-Pacific  trading at OANDA.

''This good cop bad cop routine continues to undermine Mr. Mnuchin's efforts as it still not clear if anyone other than than Trump himself is commissioned to cut a deal. And not too unexpectedly, and quiet ominously, China could cancel the meeting.''

On Monday Hong Kong dropped 1.6 percent while Shanghai was 0.8 percent off. Seoul and Singapore each lost 0.7 percent, while Wellington and Taipei also saw deep losses but Sydney edged  0.3 percent higher. [Agencies]