Yuan falls

SHANGHAI: Chinese stocks on Monday handed back their gains from a bounce late last week as worries mount ahead of a U.S. move to impose $34 billion of tariffs on Chinese exports.

The yuan, fresh off its worst month on record, continued to lose ground against the dollar, trading at around 6.6450 at 0606 GMT from a close of 6.6225 on Friday.

Chinese 10-year treasury futures for September were down in the morning but reversed course in the afternoon, inching up about 0.1 percent.

After rising last week to a more than one-year high on trade war fears, the cost to insure exposure to Chinese debt fell on Monday. The spread of the five-year credit default swap rate on Chinese sovereign debt fell 4.7 percent to 69.79 basis points. Markets are jittery ahead of a July 6 deadline when the United States is due to impose the tariffs on Chinese exports. Beijing is expected to respond with tariffs of its own on U.S. goods.