Stocks fell in Asia early Friday, following rising tensions between the U.S. and China and a selloff of tech stocks on Wall Street.
Hong Kong’s Hang Seng index
fell 1.9% while the Shanghai Composite
sank 2.3% and the smaller-cap Shenzhen Composite
slide 2.9%. South Korea’s Kospi
declined 0.6%, and benchmark indexes in Taiwan
all dropped. Australia’s S&P/ASX 200
Markets in Japan were closed for a holiday.
On Friday, China ordered the U.S. consulate in the western city of Chengdu closed, in retaliation for the U.S. closure of the Chinese consulate in Houston following allegations of spying.
“For investors, what matters is whether political escalation morphs into economic escalation. So far, there are no hints yet that either side is willing to ramp up the trade war in a global recession,” wrote Stephen Innes, chief global markets strategist at AxiCorp, in a note.
Stocks on Wall Street sank Thursday, led by declines by Apple
The Dow Jones Industrial Average
closed 353.51 points lower, or 1.3%, to 26,652.33, while the S&P 500 index
finished down 40.36 points, or 1.2%, at 3,235.66. The technology-heavy Nasdaq Composite Index
lost 244.71 points, or 2.3%, to 10,461.42.