ASX bracing for Monday bloodbath

The Australian share market is expected to open lower amid a new flare up of US- Chinese trade tensions.

The SPI200 futures contract was down 86 points, or 1.33 per cent, at 6,400.0 at 0700 AEST, suggesting a steep fall for the benchmark S&P/ASX200 on Monday.

The Chinese government announced retaliatory tariffs on $US75 billion of US goods on Friday and US President Donald Trump said his country would raise its existing tariffs on $US250 billion worth of Chinese imports to 30 per cent from the current 25 per cent beginning October 1.

On Wall Street on Friday, the Dow Jones Industrial Average finished down 2.37 per cent, the S&P 500 was down 2.59 per cent and the tech-heavy Nasdaq Composite was down 3.00 per cent.

The Aussie dollar is buying 67.38 US cents from 67.53 US cents on Friday.

A screen above the floor of the New York Stock Exchange shows the closing number for the Dow Jones industrial average on Friday. Picture: Richard Drew/AP

WALL STREET PLUNGES AS TRADE WAR HEATS UP

Wall Street tumbled after the US-China trade war escalated in dramatic fashion, with President Donald Trump demanding American companies seek alternatives to doing business with China after Beijing announced its own slate of retaliatory measures.

All three major US stock indexes ended the session sharply lower, posting their fourth consecutive weekly declines.

The latest exchanges in the long-running tariff row triggered a broadbased sell-off that hit shares of companies with high exposure to China the hardest, such as chipmakers and other top technology names.

Dow Jones Industrials components Intel and Apple dropped 3.9 per cent and 4.6 per cent respectively on Friday.

The developments overshadowed a highly anticipated speech from US Federal Reserve Chair Jerome Powell, in which he reiterated a pledge the central

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