Asian markets sink as U.S.-China tensions rise, U.S. tech stocks fall


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
HK:HSI
fell 1.9% while the Shanghai Composite
CN:SHCOMP
sank 2.3% and the smaller-cap Shenzhen Composite
CN:399106
slide 2.9%. South Korea’s Kospi
KR:180721
declined 0.6%, and benchmark indexes in Taiwan
TW:Y9999
, Singapore
SG:STI
and Indonesia
ID:JAKIDX
all dropped. Australia’s S&P/ASX 200
AU:XJO
retreated 1.2%.

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
US:AAPL
and Microsoft
US:MSFT
.

The Dow Jones Industrial Average
US:DJIA
closed 353.51 points lower, or 1.3%, to 26,652.33, while the S&P 500 index
US:SPX
finished down 40.36 points, or 1.2%, at 3,235.66. The technology-heavy Nasdaq Composite Index
US:COMP
lost 244.71 points, or 2.3%, to 10,461.42.



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