Tokyo (Reuters) – Asian stocks stumbled to a four-month low on Friday and crude oil plunged on worries the U.S.-China trade spat was developing into a more entrenched strategic dispute between the world’s two largest economies, pushing investors to safe-haven assets.
FILE PHOTO: A man is reflected in an electronic board showing the graph of the recent fluctuations of the Tokyo Stock Price Index (TOPIX) outside a brokerage in Tokyo, Japan, June 27, 2016. REUTERS/Toru Hanai/File Photo
MSCI’s broadest index of Asia-Pacific shares outside Japan edged down 0.2 percent to a fresh four-month low, and was on track for a third straight weekly loss, down 1.0% so far on the week.
Chinese shares recovered slightly, with the benchmark Shanghai Composite up 0.2% and the blue-chip CSI 300 rising 0.3%, while Hong Kong’s Hang Seng added 0.2%.
Japan’s Nikkei average dropped 0.7%.
On Wall Street, the Dow Jones Industrial Average fell 1.1%, the S&P 500 lost 1.2% and the Nasdaq Composite dropped 1.6%, as traders dumped cyclical names on fears that the escalating U.S.-China trade war would stymie global economic growth.
U.S. President Donald Trump said on Thursday that Washington’s complaints against Huawei Technologies might be resolved within the framework of a U.S.-China trade deal, while calling the Chinese telecom giant “very dangerous.”
Washington last week effectively banned U.S. firms from doing business with Huawei, the world’s largest networking gear maker, citing national security concerns.
The U.S. Commerce Department said on Thursday it was proposing a new rule to impose anti-subsidy duties on products from countries that undervalue their currencies against the