Stock markets fall after no deal in US-China trade talks

BANGKOK (AP) — Stock markets fell on Monday after trade talks between the U.S. and China wrapped up without an agreement, with economists warning that the escalating dispute over trade and technology would likely hurt economic growth.

The CAC 40 in Paris dropped 0.5% to 5,298 in midday trading while Germany's DAX gave up 0.7% to 11,970. The FTSE 100 in Britain edged 0.1% lower to 7,194.

In New York, Wall Street appeared headed for heavier losses upon opening, with the future contract for the Dow Jones Industrial Average down 1.2% at 25,656. The future for the S&P 500 fell 1.3% to 2,849.

China said it would take unspecified countermeasures after the U.S. increased its import tariffs on $200 billion of Chinese goods to 25% from 10% as of Friday. After trade talks broke up later in the day, U.S. officials said they were preparing to expand those tariffs to cover another $300 billion of goods, covering most imports from China.

By late Monday, Beijing had not indicated what it would do, adding to uncertainty in the standoff.

"The U.S. sharply hiking tariffs on Chinese imports and China threatening to retaliate has thrown into doubt the possibility of the two sides reaching a deal after almost a year of talks," said Jasper Lawler, head of research at London Capital Group.

The Shanghai Composite index fell 1.2% to 2,903.71. Japan's Nikkei 225 index gave up 0.7% to 21,191.28 and Australia's S&P ASX 200 declined 0.2% to 6,297.60. South Korea's Kospi fell 1.4% to 2,079.01, while the Sensex in India lost 0.1% to 37,420.03. Hong Kong's markets were closed for a holiday. Shares also fell in Taiwan and Southeast Asia.

China's head envoy to last week's trade talks, Vice Premier Liu He, said before leaving Washington on Friday that Beijing would not compromise on matters...