By Hideyuki Sano
https://www.reuters.com/journalists/hideyuki-sano
Global shares tumbled on Friday as Hong Kong’s political unrest returned as a flashpoint in fast-deteriorating U.S.-China relations, following Beijing’s moves to impose a new security law on the city.
The Asian financial hub's benchmark Hang Seng index .HSI sank 5% to a seven-week low, pulling MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS down 2.5%.
The CSI300 index of mainland Chinese shares .CSI300 dropped 1.9% while Japan's Nikkei .N225 lost 1%. Pan-European Euro Stoxx 50 futures STXEc1 were down 0.97% while e-mini futures for U.S. S&P500 EScv1 lost 0.8%.
China is set to impose new national security legislation on Hong Kong to tighten its grip on the semi-autonomous city.
The decision drew a warning from President Donald Trump that Washington would react “very strongly” against the attempt to gain more control over the former British colony.
“It is starting to look like a U.S.-China summer of discontent in the making,” said Stephen Innes, chief global market strategist at AxiCorp.
https://www.reuters.com/article/us-global-markets/global-stocks-skid-as-hong-kong-returns-as-sino-u-s-flashpoint-idUSKBN22X2WI