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Asian Stocks Fall Amid Persistent Trade Tensions

Investing.com - Asian Markets fell in morning trade on Thursday as the trade war between China and the U.S. showed no signs of easing.

China’s Shanghai Composite and the Shenzhen Component were down 0.9% and 1.3% respectively by 10:30 PM ET (02:30 GMT). Hong Kong’s Hang Seng Index declined 0.7%.

The fall in Asian stocks came China's Vice Foreign Minster Zhang Hanhui said on Thursday deliberately provoking trade disputes lead to "naked economic terrorism".

"This kind of deliberately provoking trade disputes is naked economic terrorism, economic homicide, economic bullying," he told reporters, adding that there will be no winners in a trade war.

The comments came after reports on Wednesday suggested that China is considering using rare earths as a counter weapon in the trade war with the U.S. The materials are crucial to the production of iPhones, electric vehicles and advanced precision weapons.

Looking ahead, investors will be focusing on the upcoming G20 summit, which is set for June 28 in Japan, as U.S. President Donald Trump and his Chinese counterpart Xi Jinping are expected to begin negotiating again over trade during the event.

Further afield, Japan’s Nikkei fell 0.8%. South Korea’s KOSPI edged up 0.1%.

Australia’s ASX 200 dropped 0.8%.


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