Nikkei hits 5.5 month low, S&P 500 futures drop 0.6 percent

• Equity bulls get smoked on escalating trade tensions.
• Japan's Nikkei drops to lowest since Oct. 10.
• S&P 500 futures remain under pressure in Asia.

Stock markets in Asia are flashing red on the increased odds of a full-blown US-China trade war.

Japan's Nikkie index opened beneath the 200-day moving average and fell to 20,745.5 - the lowest level since Oct. 10. As of writing, the index is reporting 3.8 percent drop. The Japanese stock not only faces the brunt of broad-based risk aversion but also tend to suffer the most due to a rise in JPY in times of stress.

Meanwhile, Hong Kong's Hang Seng index is down 3.7 percent in pre-market, according to Bloomberg.  Also, the S&P 500 futures are down 0.6 percent.

President Trump's decision to impose tariffs on $60 billion worth of Chinese imports sent US stock prices tumbling. The Dow Jones Industrial Average closed down 723 points yesterday - the biggest point decline since Feb. 8, when it fell by more than 1,0000 points. Meanwhile, reports that China is considering retaliatory measures are not helping the matters either.