Asia-Pacific markets fell Monday after China and the U.S. tightened trade restrictions and traded fresh accusations, renewing tensions between the world's two largest economies.

Hong Kong's Hang Seng index declined 2.22%, while mainland China's CSI 300 traded 2.73% lower.

The offshore Chinese yuan strengthened 0.1% to 7.1267 against the greenback. The 10-year China government bond yield lost more than 5 basis points to 1.752%.

China on Sunday said "we are not afraid of" a trade war with the United States after President Donald Trump vowed to impose punishing new retaliatory tariffs on Chinese imports .

A spokesperson for China's Ministry of Commerce accused the U.S. of a "textbook double standard" with Trump's promise on Friday to tack on additional 100% tariffs on those impor

See Full Page