Asia shares slip as China orders US consulate closed
MITO, Japan (AP) — Worsening China-U.S. friction, worries over aid to Americans and U.S. businesses and a stumble on Wall Street combined to push shares in Asia lower on Friday.
Shanghai led regional declines, with its Composite index giving up 3.1% to 3,220.65. The Hang Seng in Hong Kong lost 2.4% to 24,663.68.
Trump administration officials have escalated their public condemnations of China in the last several weeks, with speeches by FBI Director Chris Wray, Attorney General William Barr and Secretary of State Mike Pompeo.
As expected, China announced the closure of the U.S. consulate in the western city of Chengdu. The move was in retaliation for the U.S. order earlier this week to close the Chinese consulate in Houston, Texas.
The latest dust up between the two biggest economies comes amid allegations of theft of U.S. intellectual property — including by Chinese researchers with military and government connections — for Beijing’s benefit.
“Alongside the eviction of the Houston Chinese Consulate, the risk of the U.S.-China conflict escalating into a “Cold War” is worrying,” said Hayaki Narita of Mizuho Bank.
A speech by U.S. Secretary of State Mike Pompeo’s saying that “securing our freedom from the Chinese Communist Party is the mission of our time” adds to the rhetoric certain to incense Beijing, making it still more difficult for either side to back down, he said.
“And so, while the inevitability of deteriorating US-China relations as a structural feature of our geo-political landscape was never in doubt, the shifts appear to be hastened,” Narita said.
In other Asian trading, the S&P/ASX 200 in Australia gave up 1.2% to 6,021.40. South Korea's Kospi shed 0.5% to 2,202.81.
Analysts said investors also are wary over the unclear...
