TOKYO (Reuters) - Asian stocks slumped to nine-month lows on Thursday as investors worried that the Trump administration’s approach to trade is harming global economic growth - even as the White House approach to Chinese investment in U.S. technology companies appeared to be softening.
U.S. oil prices hit a 3-1/2-year high as plunging U.S. crude stockpiles compounded supply worries in a market already uncertain about uncertain Libyan exports, a production disruption in Canada and Washington’s demands that importers stop buying Iranian crude.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell as much as 0.52 percent to hit a new near nine-month low, before it recovered some ground, while Japan’s Nikkei average was flat after erasing earlier losses.
The U.S. S&P 500 lost 0.60 percent on Wednesday to one-month closing low.
MSCI’s broadest gauge of the world’s stock markets fell to its lowest level in almost three months, on course to post its fourth losing month in the last five. Its emerging market index hit its weakest level since mid-August.
In China, shares steadied after initial falls but remained fragile after taking a battering from worries about a wobbly yuan and the trade dispute with the United States, which has investors braced for a rocky second half of the year.
“Chinese stocks have already slid into bear market territory. I have a suspicion that investors are not worrying just about a trade war but are readying for the end of technology-led bull market,” said Yoshinori Shigemi, global market strategist at JPMorgan Asset Management in Tokyo.
“Although it is yet to be seen whether it’s caused by short-term concerns over global
