Australian stock market down 2.4% as US-China trade war hits home

Economists say a reluctant Canberra may need to spend cash to get Australia moving as ASX200 index falls for fifth day in a row

An escalating trade war between the US and China has pushed the Australian stock market down for the fifth day in a row, with the benchmark ASX200 index dropping more than 2.4% on Tuesday.

Economists played down the damage to superannuation savings of the drop in a market that just last week reached a new high not seen since the 2008 global financial crisis.