Additionally, Sentiments in Asia were weighed down by intensifying US-China tensions. In a furious speech titled “Communist China and the Free World’s Future“, US Secretary of State Michael Pompeo warned “if the free world doesn’t change Communist China, Communist China will change us,” He called for American’s allies to “triumph over this new tyranny” of the Chinese Communist Party. Separately, President Donald Trump also said the trade deal with China “means less to me now than when I made it”.
On the China’s side, it ordered the US to close the consulate general in city of Chengdu. It said in a statement, “the Ministry of Foreign Affairs of China informed the U.S. Embassy in China of its decision to withdraw its consent for the establishment and operation of the U.S. Consulate General in Chengdu. This is the long awaited response to US’s order to close China’s consulate general in Houston earlier this week.
Hong Kong HSI is down -461.31 pts, or -1.83% at noon. It’s now reversed all of the earlier gains this week and breaks the 55 day EMA. This EMA would be the focus for next week’s trading. Sustaining below there would be the first sign of completion of whole corrective rebound from 21139.26. Deeper fall would then be seen back towards 22519.73 support. Selling could spread to other Asian markets if that happens.
