China shares tumbled on Friday as Sino-US tensions came back into focus following President Xi Jinping’s warning to foreign forces against bullying and oppressing China.
Xi, in his speech marking the 100th birthday of the ruling Chinese Communist Party, pledged to both defeat any attempt towards “Taiwan independence” and to exercise overall jurisdiction over Hong Kong and Macau.
China blue-chip CSI300 shares suffered the most on Friday, slumping 2.4% at 0655 BST (+1GMT). The Shenzhen and Shanghai benchmarks declined over 1.6% each.
The United States on Thursday called on Beijing to reduce destabilising tensions and voiced its concern over China increasing its nuclear arsenal following a Washington Post report that said China had built over 100 new silos for intercontinental ballistic missiles in a desert area.
Xi, in his hour-long address from Tiananmen Square on Thursday, said that China would not accept preaching from “those who feel they have the right to lecture us”.
The Chinese premier went on to emphasis the spirit of self-reliance and the need to build China’s strength in the fields of science and technology.
Hong Kong falls
Hong Kong markets mirrored regional peers, sinking 1.6% by 0710 BST (+1GMT). Net outflows hit CNY6.4bn ($990m) by midday, on track for the most since March, as foreign investors dumped mainland shares via Hong Kong, Bloomberg said in a report.
Elsewhere, Australia shares rose 0.4% at 0630 BST (+1GMT) as energy stocks emerged as the biggest pull on the index.
The ASX’s energy sub-index, AXEJ, gained 1.8% on the back of rising oil prices. Oil and gas explorer Oil Search, liquefied natural gas company Woodside Petroleum and fuel products retailer Viva Energy were the biggest percentage gainers on the sub-index.
Westpac Banking was the only “Big Four” bank in the red on Friday after the Australian Securities and Investments Commission said the lender expects it will pay A$87m ($64.9m) to former customers of its advice business over failure to pass on important securities-related information.
In Japan, export-focused companies Sony Group and Toyota Motor helped the NIKKEI 225 gain 0.3% by 0650 BST (+1GMT). Tokyo-listed shares of the electronic-equipment maker and the automaker were up 3.5% and 1.1%, respectively.
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