The euro zone's beleaguered manufacturing industry showed some signs of stabilisation last month but factory activity in Asia lost momentum as soft Chinese demand and threats of U.S. tariffs weighed on sentiment,

Korea’s KOSPI index fell by 2.5% on Monday, as Trump’s tariff moves could threaten both South Korea’s export-heavy economy, as well as the supply chains of its major manufacturers. Electronics giants Samsung and LG, and automakers Kia and Hyundai, all have manufacturing facilities in Mexico.

Investors braced for a potential trade war after Trump imposed tariffs on goods from Canada, Mexico and China and pledged future tariffs on the European Union.