Asia-Pacific markets traded in red on Monday amid fears of a global trade war following U.S. tariff measures, triggering a selloff in risk assets. President Donald Trump imposed a 25% tariff on Canadian and Mexican imports and a 10% tariff on Chinese goods,

Asia markets slumped on Monday after Donald Trump slapped tariffs on Canada, Mexico and China, sparking fears that another bruising ‘America First’ trade war that could hit global growth.

Investors are bracing for a potential trade war that could hit the earnings of major companies and dent global growth. Canada and Mexico have said that they will hit back with retaliatory tariffs while China promised to respond with "corresponding countermeasures" and vowed to challenge Trump's move at the World Trade Organization.

Investors will be looking out for Malaysia’s central bank policy meeting today, where the Bank Negara Malaysia is expected to keep its policy rate steady at 3%.