Asian Markets Were Sold off Due to Uncertainty over How U.S. Markets

Asian shares slipped on Friday, knocking a global stock index off its path to hitting an all-time peak as investors turned cautious, fearing a new U.S. law backing Hong Kong protesters could torpedo efforts to end the U.S.-China trade war.

MSCI All Country world index .MIWD00000PUS, whichtracks shares in 49 countries, was down 0.39% at 548.48, less than 0.4% away from all-time peak hit in January last year before the start of U.S.-China trade war.

European stocks look set to start Friday lower with pan-region Euro Stoxx 50 futures down 0.3% in early trade, following a bleak Asian morning session.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell more than 1%. Hong Kong .HSI led the dip with losses of 2%. South Korean shares .KS11 lost 1.4% and Japan's Nikkei .N225 eased 0.5%.

China's blue-chips .CSI300 gave up 1.3% a day before the country reports manufacturing activity, which analysts polled by Reuters expect to have shrunk for seventh straight month in November.

Markets were sold off due to uncertainty over how U.S. markets will perceive the latest clash between Washington and Beijing over Hong Kong.

Read here