Asian shares fell to six-week lows on Thursday as tensions rose ahead of last-ditch US-China trade talks that could sharply alter the direction of the global economy.
MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 1% to its lowest level since March 28. Trump has threatened to raise tariffs to 25% from 10% on $200bn worth of Chinese imports at 4.01am GMT on Friday. Beijing has vowed to retaliate, without giving details. The closely watched spread turned negative in late March, spooking investors, who read the development as portending a future recession.
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