Asia's stock markets reacted strongly to the escalation of the US-China trade dispute on Monday, with sharp declines. On China's mainland exchange, the CSI 300 lost 1.39 percent. In Hong Kong, the losses were even higher. The local Hang Seng slumped 3.10 percent. In Tokyo, the Nikkei 225 was last by 2.26 percent. On Friday, China and America, in quick exchange of blows, had punished each other with punitive tariffs. The trade dispute has finally turned into a trade war.