Asian stocks fell sharply on Monday, with Chinese chipmakers leading a slump in new US trade sanctions as broad sentiment was shrouded in fears of worsening Federal Reserve measures.

The Shanghai Shenzhen CSI 300 Blue-chip Index was down 0.9 percent, while the Shanghai Composite Index was down 0.4 percent. Chipmaking shares of Anji Microelectronics Tech Co Ltd (688019) and Chengdu Xuguang Electronics Co Ltd (600353) fell as much as 20% after the White House unveiled export controls that cut off Chinese companies.

Hong Kong stocks were also volatile, with the Hang Seng index falling nearly 3%. Tech heavyweights Alibaba Group Holding Ltd (9988), Baidu Inc (9888) and Tencent Holdings Ltd (HK: 0700) fell 2% to 4%.

The US move threatens to worsen trade relations between the world’s two largest economies and could have a deeper economic impact if China retaliates.

Sentiment in China also worsened, with weekend data showing the country’s services sector fell unexpectedly in September amid a series of disruptions related to COVID. The recent recovery of the infection has also raised concerns about further locking.

Asian stocks fell sharply on Monday, despite trading volume closed due to holidays in Japan and South Korea.

ASX 200 was down 1.4 percent as miners suffered heavy losses on expectations of declining demand in China. The Philippines’ PSEi Composite Index was the worst performer in Southeast Asia, down 1.1 percent. India’s Blue-chip Nifty 50 Index fell 1.3 percent.

Regional stocks led the weakness from Wall Street, which fell on Friday after stronger-than-expected U.S. jobs data gave the Federal Reserve little reason to soften its bad tone.

The focus this week, too, is on US CPI inflation data for September, which is set for Thursday. The reading, which is expected to show that inflation remained hot until last month, will also lead to the Fed’s position on interest rates.

The market is pricing on more than 80% chance that the Fed will raise interest rates by 75 basis points in November. Rising US interest rates are the biggest driver for Asian markets this year and are likely to slow down in the near future.

Gold odds also fell sharply in relation to the dollar index and job losses in the United States last Friday. Gold fell from $ 1,708.00 on Friday to $ 1,685.00 on Monday.

For today, I encourage investors to either wait for the sale price of $ 1,690.00 or sell at the current price of $ 1,687.00 per ounce, setting the risk of loss at $ 1,698.00 and profit at $ 1,675. 00 per ounce.

Analyst: Mr. Long Samnang, Independent Analyst