BENGALURU: Emerging Asian stock markets sank but currencies were mixed against a weakened U.S. dollar on Friday as China made a tit-for-tat move by ordering the U.S. consulate in Chengdu to shut, stoking fears over relations between the world's two largest economies.
Singapore, Thailand and Malaysia all tumbled more than 1%, while Indonesia and trade-reliant South Korea were each 0.9% lower after Beijing retaliated after the United States ordered the Chinese consulate in Houston to close.
"While the inevitability of deteriorating U.S.-China relations as a structural feature of our geo-political landscape was never in doubt, the shifts appear to be hastened," Mizhuo analysts said.
Bangkok shares hit their lowest in 10 days and the baht eased, with the gloom heightened by data showing Thailand's exports in June fell more than feared.
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