Asian markets: Obama's 35 percent tariff sends Chinese tire stocks plunging

Shares in Asia were mixed Monday with the Hang Seng down 1.1 percent to close at 20,932 and the Nikkei dropping 2.3 percent to end the day at 10,202. Only the China markets were in the green with the Shanghai Composite gaining 1.2 percent to close at 3,027.

The Chinese index might have gone higher, had it not been for Obama's decision on Friday to levy new trade tariffs on all Chinese-made car and light truck tires entering the U.S.

This news led to a steep sell-off in the Chinese tire sector with tire producer Double Coin Holdings, Ltd. plunging 10 percent - the maximum daily loss limit. Aeolus Tyre Co., the tiremaker with the largest market cap slumped 3.3 percent while Guizhou Tyre Co. Ltd. slid 6.7 percent and Giti Tire Corp. fell 4.9 percent.