Scepticism takes over markets

Global markets were mostly lower on Friday amid worries that US economic sanctions on Huawei may cast a pall on trade talks with China.

Germany’s DAX slid 0.6 per cent to 12,238.94 and the CAC 40 in France lost 0.2 per cent to 5,438.23. Britain’s FTSE 100 fell 0.1 per cent to 7,348.62. The Euro Stoxx 50 was down 0.4 per cent to 3,424.64.

In Asia, the Shanghai composite gave up 2.5 per cent to 2,882.30. Hong Kong’s Hang Seng lost 1.2 per cent to 27,946.46 and the A-share index on the smaller market in Shenzhen lost 3.3 per cent.

Japan’s benchmark Nikkei 225 jumped 0.9 per cent to 21,250.09, while Australia’s S&P ASX 200 advanced 0.6 per cent to 6,365.30. The Kospi in South Korea shed 0.6 per cent to 2,055.80.

Shares fell in Taiwan, Singapore and Indonesia but rallied in the Philippines. India’s Sensex rebounded, rising 1.44 per cent to 37,930.77.

Wall Street stocks, however, were mostly higher at mid-morning on Friday, largely shaking off trade war-related uncertainty after a report said US consumer sentiment was at a 15-year high.

Near 1535GMT, the Dow Jones Industrial Average was up 0.5 per cent at 25,912.75.
The broad-based S&P 500 added 0.1 per cent at 2,879.62, while the tech-rich Nasdaq Composite shed 0.1 per cent to 7,890.88.

The Trump administration has issued an executive order aimed at banning Huawei equipment from US networks. Another sanction that subjects the Chinese telecommunications giant to strict export controls took effect on Thursday.

China has threatened to retaliate. It remains to be seen how the move will affect trade negotiations, which are expected to continue.

Last Friday, trade talks broke up with no agreement after the US more than doubled tariffs on $200 billion worth of Chinese imports to 25 per cent from 10 per cent.

“The trade issue could still get worse before it

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