· Shares fall as Sino-U.S. tensions eclipse China GDP growth
Asian shares and U.S. stock futures fell on Thursday, weighed down by concern about deteriorating U.S.-China relations and the economic cost of a resurgence in coronavirus infections that is prompting some governments to reimpose containment measures.
Even news that China’s economy rebounded more than expected in the second quarter from a record contraction was not enough to pull regional equities out of the red.
MSCI’s broadest index of Asia-Pacific shares outside Japan slid by 1.18%, while Tokyo’s Nikkei fell 0.74%. U.S. S&P 500 e-mini stock futures declined by 0.43%.
Risk appetite took a hit due to worries about a wide-ranging dispute between the United States and China over the control of advanced technologies and the protection of civil liberties in Hong Kong.
China’s economy expanded by a better-than-expected 3.2% in the second quarter from a year earlier, returning to growth as lockdown measures ended and policymakers stepped up stimulus.
But its recovery is still uneven. Separate data showed China’s industrial output beat expectations in June, but retail sales unexpectedly fell again, suggesting consumer demand remains weak.
A second wave of coronavirus infections is also triggering a return to restrictions on business and personal activity that threaten to impede economic recoveries.
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Tokyo stocks close down on fresh virus surge in capital
Tokyo stocks closed lower on Thursday as market sentiment worsened after the capital's governor warned of a record number of daily coronavirus infections.
The benchmark Nikkei 225 index was down 0.76 percent, or 175.14 points, at 22,770.36, while the broader Topix index fell 0.66 percent, or 10.45 points, to 1,579.06.
"Sentiment was dampened by a surge in coronavirus infections in Tokyo," said Yoshihiro Okumura, general manager at Chibagin Asset Management.
Tokyo Governor Yuriko Koike said the number of infections in the capital was expected to reach a record of more than 280 on Thursday.
"The figure was not enormous but it's definitely not good news," Okumura told AFP.
· China shares plunge as Sino-U.S. tensions weigh
Chinese shares slumped by the most in more than five months on Thursday as a bull run that had pushed the country's benchmark indexes to multi-year highs reversed sharply amid renewed Sino-U.S. tensions.
At the close, the Shanghai Composite index was down 4.5% at 3,210.10, and the blue-chip CSI300 index plunged 4.81%, the sharpest one-day percentage fall for both indexes since Feb. 2.
· European stocks retreat, shrugging off Chinese growth data that beat expectations
European stocks traded in negative territory on Thursday morning, failing to get a boost from Chinese growth data showing a rebound in the economy.
The pan-European Stoxx 600 slid 0.6%, with food and beverages shedding 1.5% to lead losses while oil and gas bucked the trend to add 0.4%.
Reference: CNBC, Reuters
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