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· Asian share markets fell on Thursday as concerns that tensions over Hong Kong may stymie a U.S.-China trade deal cast a pall over Thanksgiving cheer from positive U.S. economic data.

That put a lid on steady gains this week for MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS. The benchmark fell 0.2% on Thursday.

“I think it could easily get a lot worse,” said Kay Van-Petersen, global macro strategist at Saxo Capital Markets in Singapore, as investors await more details on China’s response.

“We could potentially see a greater chance of a move downwards based on what happens in the next 24-48 hours.”

· Japanese shares dipped on Thursday after U.S. President Donald Trump signed into law congressional legislation backing protesters in Hong Kong, sparking fears of a fresh confrontation with Beijing that could derail their trade talks.

The Nikkei share average fell 0.12% to 23,409.14, snapping a four-day winning streak while the broader Topix lost 0.17% to 1,708.06, with decliners outnumbering gainers by 1,416 to 628.

“In the near term, people are watching how China will react to Trump’s move,” said Masahiro Ayukai, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

“But there is little change in the view that the global economic sentiment is bottoming out,” he added.

· China stocks closed lower on Thursday as investors feared the U.S. government’s decision to sign a bill backing protesters in Hong Kong could derail an interim trade deal between Washington and Beijing.

The blue-chip CSI300 index ended 0.3% lower at 3,862.30, while the Shanghai Composite Index closed down 0.5% at 2,889.69.

Investors are also worried about China’s economic slowdown. China should lower its economic growth target to around 6% for 2020 and step up stimulus as the trade war has exacerbated a protracted slowdown, government advisers said ahead of a key leadership meeting on the economy.

· J.P. Morgan has an optimistic outlook on Asian stocks, with South Korea and India positioned to perform particularly well going into 2020.

“We’re looking at an MSCI Asia ex-Japan index target of 750 at the end of first half. Year end, however, we’re looking at 700,” J.P. Morgan’s head of Asia ex-Japan equity research, James Sullivan, said Monday.

Still, J.P. Morgan said its 2020 year-end target for the index — which tracks large and mid-cap stocks across Asian markets, including China, Korea, and India — is roughly 8% above current levels.

But stocks in Asia could benefit as global tech demand recovers and companies resume investments. Korean and Indian equities, in particular, could benefit from these trends and “surprise” investors, Sullivan said.

· European markets opened lower on Thursday, as investors monitored friction between the U.S. and China over the Hong Kong protests.

The pan-European Stoxx 600 fell by 0.2% at the opening bell, with tech and auto stocks shedding 0.5% to lead losses as the majority of sectors and major bourses entered negative territory.