Asian shares slip on sign of escalating US-China tensions

Asian shares fell on Wednesday after a trade dispute between the US and China stalled a weekend meeting, dimming hopes that it could be resolved once their leaders meet.

Japan’s benchmark Nikkei 225 dropped 0.4 per cent to 21,507.54 and the Kospi in South Korea was down 0.3 per cent at 2,075.43. Hong Kong’s Hang Seng index slipped 0.3 per cent to 25,764.33.

The Shanghai Composite lost 0.1 per cent to 2,643.84. Australia’s S&P/ASX 200 fell 0.5 per cent to 5,642.80. Shares fell in Taiwan, Indonesia and the Philippines but rose in Singapore, reports AP.

Broad losses by the world’s largest technology companies pulled US indexes lower on Tuesday and into the red for the year.

Apple plunged 4.8 per cent, Microsoft lost 2.8 per cent and IBM gave up 2.6 per cent.

The S&P 500 index fell 1.8 per cent to 2,641.89 and the Dow Jones Industrial Average tumbled 2.2 per cent to 24,465.64. The tech-heavy Nasdaq composite shed 1.7 per cent to 6,908.82.

The Russell 2000 index of smaller-company stocks dropped 1.8 per cent to 1,469.01.

Oil prices rebounded Wednesday after plunging on worries of rising supplies and softening global growth. Benchmark US crude added 69 cents to $54.12.

The contract dropped $3.77 to close at $53.43 in New York, its lowest price in more than a year. Brent crude, the international standard, rose 66 cents to $63.19. It fell $4.26 to $62.53 in London.

The dollar rose to 112.82 yen from 112.76 yen late Tuesday. The euro strengthened to $1.1386 from $1.1367.