Stocks were little changed in Shanghai and posted a modest decline in Hong Kong, as investors weigh increasingly attractive valuations against deepening US-China tensions. The yen’s climb on Monday, when Japan’s markets were shut, left Japanese stocks under pressure. The IMF’s first reduction in its outlook for global growth since 2016 underscored headwinds to stocks going forward — particularly outside the US, which continues to benefit from tax cuts.
China’s stock sell-off eased after the biggest decline in more than three months, while Japanese shares slumped as the yen strengthened. Ten-year Treasury yields were steady around seven-year highs as they resumed trading after a holiday.