An index of global stock markets rose on Monday for the first time in eight trading sessions on optimism about policy from Italy to the United States, dodging anxiety about the U.S.-China trade war.

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MSCI`s gauge of stocks across the globe added 0.06 percent, but it felt fragile after a sell-off in China overnight and emerging market shares hit their lowest level in more than a year.

Traders were bracing for a potential escalation in the Sino-U.S. row after President Donald Trump raised the stakes on Friday by saying he was ready to impose tariffs on virtually all Chinese imports to the United States. He also called on Apple Inc https://reut.rs/2CCAgGn)

Some Asian economies are also vulnerable, Nomura analysts said, with many countries burdened by high private debt. They noted a "concentration risk" from some of the world`s largest funds` heavy investments in emerging market assets.

The Indian rupee hit a record low and Indonesia`s rupiah neared all-time lows.

The Australian dollar , a proxy for Chinese growth because Australia sells raw materials to China, was at its lowest in more than two years.

Copper, an industrial metal China uses heavily, lost 0.72 percent, adding to a nearly 20 percent collapse in price this year. cmcu3

Beijing had warned of retaliation if Washington launched any new trade measures. But it is running out of room to match them dollar-for-dollar, raising concern it will resort to other measures, such as weakening the yuan or taking action against U.S. companies in China.

MSCI`s broadest index of Asia-Pacific shares outside Japan closed down 1.2 percent at the lowest since July 2017.

The potential for a U.S. Federal Reserve rate hike after a U.S. labor market report showed wages posting their largest annual increase in more than nine years pushed 2-year Treasury yields to 2.715 percent, the highest in 10 years.

Risk aversion supported the 30-year bond, which rose 12/32 in price to yield 3.0835 percent.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)