Asian stocks fell on Monday after President Donald Trump last week doubled tariffs on steel and aluminium, and accused China of violating last month’s agreement to slash tit-for-tat levies.

Asian markets sank Monday as investors brushed off data showing the Federal Reserve’s favoured inflation gauge cooled more than expected last month, with fears about the impact of the tariffs on the economy back in focus.

Hong Kong dropped more than two per cent, with property firms taking a heavy hit on worries over the future of New World Development after it deferred interest payments on some bonds.

The firm is in the middle of a loan refinancing drive as it looks to raise more than US$11 billion from banks.

Its struggles have revived fears about China’s property sector as companies struggle to sell stock to help pay off their bulging debts.

Tokyo, Sydney, Singapore, Taipei, Manila, and Jakarta also fell, with Shanghai closed for a holiday, AFP reports.

Oil prices surged after OPEC and other key producers hiked output for July, however, less than expected, while geopolitical fears were ramped up after Ukraine hit air bases deep inside Russia, raising concerns over an escalation of the three-year war.

The dollar also retreated on concerns about the US economy as Trump continues to push a bill to extend tax cuts and slash welfare spending, which observers say will add trillions to the already gargantuan national debt.