Asian shares retreated from a record peak on Monday after a Reuters report the United States was preparing to impose sanctions on some Chinese officials highlighted geopolitical tensions, while oil prices fell on surging virus cases

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3% following four straight sessions of gains.

It is still up about 16% so far this year, the best since a 33% jump in 2017.

China’s blue-chip index dropped 0.8%, largely ignoring strong export data, while Hong Kong’s Hang Seng was down 1.8%.

Japan’s Nikkei declined 0.4% while Australian shares were up 0.4%.

E-Mini futures for the S&P 500 were down 0.2% after starting higher.

The sell-off began after Reuters exclusively reported, citing sources, that the United States was preparing sanctions on at least a dozen Chinese officials over their alleged role in Beijing’s disqualification of elected opposition legislators in Hong Kong.

The move comes as President Donald Trump’s administration keeps up pressure on Beijing in his final weeks in office.

“One thing that the market has been concerned about is that on his ‘Out of office’ Trump would look for some retribution on China. So this news speaks to that fear,” said Kyle Rodda, market strategist at IG Markets in Melbourne. “At the end of the day, the market knows he only has six weeks left. The broader focus is still on vaccine roll-outs and US fiscal stimulus.”