Asian stocks extended a global downturn on Tuesday, while the safe-haven yen rose as U.S. President Donald Trump threatened new tariffs on Chinese goods in an escalating tit-for-tat trade war between the world`s two biggest economies that has rattled financial markets.

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Trump warned on Monday that Washington would impose a 10 percent tariff on $200 billion of Chinese goods after Beijing`s decision to raise tariffs on $50 billion in U.S. goods. Trump said if China increases its tariffs again in response to the latest U.S. move, "we will meet that action by pursuing additional tariffs on another $200 billion of goods."

The retaliatory moves come after Trump said last week he was pushing ahead with tariffs on $50 billion of Chinese imports.

The trade frictions have kept financial markets on edge, with investors increasingly worried that a full-blown trade conflict could derail global growth.

S&P 500 futures were off 0.6 percent, pointing to a another down day for Wall Street shares which slipped on Monday.

MSCI`s broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent.

Japan`s Nikkei lost 0.45 percent, South Korea`s KOSPI edged down 0.1 percent while Australian stocks added 0.3 percent.

The dollar fell 0.45 percent to 110.06 yen jpy

"The financial markets are trying to gain a breather after last week, when there were many news events, but U.S.-China trade remains a lingering theme, at least until the U.S. tariffs take effect early in July," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo.

"While trade tensions are not a positive theme, the market has become accustomed to President Trump`s comments, which appear to be negotiating tactics."

The euro was 0.05 percent higher at $1.1631 eur

In commodities, crude oil markets remained volatile ahead of Friday`s OPEC meeting at a time when Russia and Saudi Arabia are pushing for higher output.

Brent crude futures lcoc1

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