FTSE 100 LIVE: Asian shares drop amid tensions between China and the US

FTSE 100 LIVE: Asian shares drop amid tensions between China and the US

Investors concerns over Washington and Beijing tensions overcame hopes for more stimulus, after the United Sates ordered the closure of China’s consulate in Houston amid accusations of spying. China said the order was an “unprecedented escalation” by Washington, and a source said Beijing was considering shutting the US consulate in Wuhan in retaliation.

After ticking higher earlier in the morning session, MSCI’s broadest index of Asian shares ex-Japan was last down 0.3%, weighed down by slumping Chinese stocks. The Shanghai benchmark dropped 1.67% following four days of gains. Australian shares were flat and Hong Kong’s Hang Seng index reversed earlier gains to lose 0.08%. Hopes for another round of US stimulus and strong corporate earnings boosted Wall Street overnight. The Dow Jones Industrial Average rose 0.62%, the S&P 500 gained 0.57% and the Nasdaq Composite added 0.24%.

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Published at Thu, 23 Jul 2020 04:44:41 +0000