BANGKOK (AP) – European shares fell after a mixed session in Asia on Monday at the outset of a week likely to be focused on an earnings report by chip maker Nvidia.
The future for the S&P 500 rose 0.5% while that for the Dow Jones Industrial Average edged 0.1% higher.
Germany’s DAX fell 0.4% to 23,783.15, while the CAC 40 in Paris slipped 0.3% to 8,147.12. Britain’s FTSE 100 edged 0.1% lower to 9,687.58.
In Asian trading, Tokyo’s Nikkei 225 fell 0.1% to 50,323.91 after the government reported that the Japanese economy contracted at a 1.8% annual pace in the July-September quarter.
The dollar rose against the Japanese yen, climbing to 154.75 yen from 154.58 yen.
Chinese markets also slipped, as Hong Kong’s Hang Seng shed 0.7% to 26,384.28. the Shanghai Composite index declined 0.5% to 3,972.03.
Geopolitical tensions have dimmed investor sentiment in East Asia,as relations between China and Japan have deteriorated due to a spat following Prime Minister Sanae Takaichi’s suggestion that a Chinese move against self-governing Taiwan could prompt a Japanese military response.
China objects to other countries’ involvement in Taiwan, which Beijing claims it as its own and destined to come under its control.The Chinese government has warned its citizens not to travel to Japan or study there.
“China’s escalation against Japan over Prime minister Takaichi’s Taiwan remarks has moved from a diplomatic irritant to a consequential macro input,with markets now forced to reprice Asia’s near-term risk curve,” stephen Innes of SPI Asset Management said in a commentary.
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