China-U.S. Dispute Over Consulate Puts Market Watchers on Edge
- Offshore Chinese shares, the yuan both tumble in the afternoon
- Washington and Beijing already at odds over technology, trade
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The latest tensions between China and the U.S. have put investors on edge and caused concern that a possible worsening of ties will dampen enthusiasm for riskier assets, market watchers say.
News that Washington had ordered China to close a consulate sent equities in Hong Kong sliding, with the Hang Seng China Enterprises Index falling 1.9% at the close, snapping a three-day climb. The yuan also fell, erasing an earlier gain, and government bonds advanced.