© Reuters. FILFOTO: Traders work on NYSE floor in New York By Hideyuki Sano TOKYO (Reuters) – US stock futures…
By Hideyuki Sano
TOKYO (Reuters) – US stock futures tripped on Thursday and Asian markets followed after the Canadian authorities arrested a top director of Chinese tech giant Huawei Technologies, fanning fear of further tension between China and the United States.
The S & P500 e-mini futures () fell almost 2 percent at a time in thin Asian morning trade and lasted 0.7 percent.
The Canadian Justice Department said that Meng Wanzhou, Vice President of Huawei, was arrested early this month and sought for extradition by the United States.
Arrest increased the sense of a major collision between the world’s two biggest economic powers, not just over customs but also over technical hegemony.
It also came as an inverse in the US interest rate curve has stoked global investor worries of a
Japan’s Nikkei () dropped 0.8 percent, with the reference index in South Korea () and Australia () by 0.6 percent and 0, respectively, 2 percent.
The currencies were evener, with large currencies still not changed yet.
The euro is trading flat at $ 1
,1347 () while the dollar dampened 0.1 percent against the yen to 113.01 . Yuan is also unaffected at 6.8660 in the offshore trade.
U.S. Treasury futures were also almost flat.
The term Treasury 10-year return () fell to its lowest point since mid-September on Tuesday while the five-year return declined during the two-year return, causing a so-called inversion in the yield curve.
As an inverted curve often tended to lie before a recession, investors became haunted by it.
US. The markets were closed Wednesday to mark the death of former President George H.W. Bush.
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