· Asia shares stymied by Sino-U.S. spat, euro stays buoyant
Asian shares slipped from six-month peaks on Friday as Sino-U.S. tensions soured what had been an upbeat week, while the euro held a 21-month top against an embattled dollar and gold neared a record high.
For once, currencies have dominated trading as a deal on a European Union recovery plan shot the euro to its highest since late 2018. The single currency was last standing tall at $1.1611 having climbed 1.6% for the week so far.
That was taken as a signal to sell the dollar, which was down 1.4% on the week against a basket of currencies at 94.645 and heading for its fifth straight weekly loss.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 1.3%, trimming its weekly gain to 0.6%. Tokyo was closed for a holiday, but Nikkei futures were trading 250 points below the cash close.
· China stocks slump as Sino-U.S. tensions escalate
China stocks slumped on Friday to finish the week lower, as investors fretted over an escalation in tensions between Beijing and Washington after China ordered the United States to close its consulate in Chengdu in a tit-for-tat response.
The blue-chip CSI300 index fell 4.4% to 4,505.59, while the Shanghai Composite Index retreated 3.9% to 3,196.77.
· European stocks tumble as U.S-China tensions weigh on sentiment
European markets retreated Friday morning as flaring of diplomatic tensions between the world’s two largest economies continues to weigh on sentiment.
The pan-European Stoxx 600 dropped 1.4% at the start of trading, with tech stocks tumbling 3% to lead losses as all sectors and major bourses slid into negative territory.
Global investors will be reacting to China’s retaliation to the U.S. decision to force the closure of the Chinese consulate in Houston, which it accused of being a hotspot for espionage and intellectual property theft.
In response, Beijing announced Friday that it is revoking the license of the U.S. consulate general in the southwestern Chinese city of Chengdu, and ordered the consulate to cease operations.
Reference: CNBC, Reuters
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