Asian shares drop to nine-month

TOKYO (Reuters) – Asian stocks slumped to nine-month lows on Thursday as investors worried that the Trump administration's approach to trade is harming global economic growth – White House approach to Chinese investment in US technology companies softening.

MSCI ACWI, the benchmark compiler's broadest gauge of world stocks covering 47 markets 0.17 percent to their lowest level since early April.

European stock futures point to fall of 0.2-0.3 percent in major european stock indexes, such as Britain's FTSE, France's CAC and Germany's DAX.

U.S. Oil prices hit a 3-1 / 2-year high as plunging U.S. crude crude oil in the stock market. Libyan exports, a production disruption in Canada, and Washington's demands that importers stop buying Iranian crude.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.59 percent to hit a fresh-bottomed nine-month low, while Japan's Nikkei averaged flat after erasing earlier losses.

The U.S. S & P 500 lost 0.60 percent on Wednesday to one-month closing low.

MSCI's broadest gauge of the world's stock markets. Its emerging market index hits its weakest level since mid-August.

In China, shares remain fragile after struggling with the United States, which has braced investors for a second half of the year.

"Chinese stocks have already been slid into bear market territory. "I have a suspicion that investors are not worried about this market," said Yoshinori Shigemi, global market strategist at JPMorgan Asset Management in Tokyo.

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The Shanghai Composite index hit a fresh 25-month month low, with both the Shanghai and technology-heavy.

South Korea's tech-heavy KOSPI slipped as much as 1.33 percent to 10 months.

Trump said on Wednesday he would use a national security review of China's acquisition of sensitive American technologies, a softer approach that imposes China-specific investment restrictions.

Although lifted U.S. stocks initially, optimism quickly evaporated after White House economic adviser Larry Kudlow said Trump's remarks did not indicate a softened stance on China.

Markets remain anxious about Trump's hard-line approach to trade relations, with early signs and symptoms.

Two U.S. major auto trade groups on the road to taxing rates of up to 25 percent on motor vehicles, dramatically threatening vehicles, and threatening self-driving cars.

The move came after U.S. motorcycle maker Harley-Davidson Inc. said earlier this week it would move production intended for European markets to the United States to avoid retaliatory tariffs.

"Initially investors saw Trump's moves to negotiate better deals. But now they are starting to worry about the damage to the economy, "said Mutsumi Kagawa, chief global strategist at Rakuten Securities.

"People have long thought the U.S. economy will eventually hit a recession at some point. But there are growing worries. Trump's trade policies may hasten that. The fear is that America first can become America Worst, he added. The yield on 10-year U.S. Treasuries dropped to 2.827 percent, nearing its May 29 low of 2.759 percent.

In worrying for some investors, the U.S. yield curve flattened further, with the spread between the two and 10 year yields narrowing to a 10-year low of just 32 basis points, or 0.32 percentage point.

Historically, the U.S. economy has reached a recession after the spread of the world, inverting the yield curve.

The fall in U.S. yields yields to rising inflation rates.

U.S. crude futures surged 3.16 percent on Wednesday, rising to as much as $ 73.06 at barrel, the highest since Nov. 28, 2014, on signs of tight supply.

U.S. crude stocks fell nearly 10 million barrels last week while in North America.

White House Pressurization of the United States of America in the United States of America and the United States of America.

U.S. crude futures last traded at $ 72.47 in barrel, down 0.40 percent in Asian trade.

Copper, seen as a barometer of the strength of global economy because of its broad industrial use, hit a low of $ 6.692.5 a ton.

In the currency market, major currencies were treading water on uncertainty over escalating trade friction.

Chancellor Angela Merkel's coalition partner said it was not seeking to break up the government.

The common currency stands at $ 1.1547, edging toward an 11-month low of $ 1.1508 a week ago.

The dollar has changed hands at 110.32 yen, slightly rising in the past month. The currency is on its way to its smallest price range.

The yuan hit a new, more than six-month low as China set the mid-point yuan at its weakest since December 20, 2017.