Asian markets tumble amid worries over trade deal delay

Asian markets tumble amid worries over trade deal delay
Mark Schiefelbein/AP

Asian markets tumbled Thursday, as worries grew over the possible delay of a preliminary trade deal between the United States and China.

Hong Kong’s Hang Seng Index briefly slid 2.2% in early trading. It recovered some of those losses later in the morning and was last down 1.6%. Japan’s Nikkei 225 declined 1.7%. South Korea’s Kospi also dropped 1.4%. China’s Shanghai Composite Index was off 0.2%.

US stocks closed lower on Wednesday, after a Reuters story said the United States and China may not be able to reach a “phase one” deal as both sides have heightened demands of their own.

US President Trump told reporters on Wednesday after US markets closed that he is not ready to make a deal with China because he didn’t think that China was “stepping up to the level” that he wanted.

Tensions are also rising between the two countries over the political situation in Hong Kong.

China strongly condemned on Wednesday the US Senate’s passage of a bill that supports human rights in Hong Kong. China said it would take “forceful countermeasures” if the United States presses ahead with the bill.

US futures fell further during Asian trading hours on Thursday. Futures for the Dow, S&P 500 and Nasdaq were all down 0.2%.

CNN’s Nikki Carvajal contributed to the report.