Asian shares were trying to end a bleak week in the black on Friday as upbeat U.S. economic news and solid company earnings offered a respite from the interminable Sino-U.S. trade saga.
The reprieve might prove brief, however, given the fallout from President Donald Trump’s move to block China’s Huawei Technologies from buying vital American technology.
“It is hard to get too excited as the news flows in the trade front points to an escalation rather than an ease in tensions,” said Rodrigo Catril, senior FX strategist at National Australia Bank.
“Many commentators are suggesting the decision on Huawei and other Chinese telecos effectively means the President has taken the ‘nuclear option’ and it has now move toward a ‘fully-fledged’ tech war with China.”
For now, Asian markets were just happy for a break. MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.1%, but was still down 1.8% for the week.
Source : Reuters