The United States gave China 72 hours to close its consulate in Houston amid accusations of spying, marking a dramatic deterioration in relations between the world’s two biggest economies.
For equity markets, the mood darkened after Beijing ordered the US to close its consulate in Chengdu in retaliation.
Chinese blue chips retreated 3.7% as a result, wiping out a week of gains.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 1.7%.
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