Asian stocks fall as mounting U.S.-China tensions dampen risk sentiment

Asian stocks fell on Friday, closing at a sour note for May as escalating tensions between the U.S. and China dampened investor risk sentiment.

U.S. President Donald Trump is set to reveal his response to Beijing’s national security laws at a press conference later in the day. China had approved the enactment of the laws in Hong Kong at the National People’s Congress on Thursday.

Britain’s Foreign Secretary Dominic Raab said on Thursday that his government will offer U.K. citizenship to over 300,000 Hong Kong residents with British National Overseas (BNO) passports.

Meanwhile, China has vowed to retaliate against any U.S. response to its laws.   

Hong Kong’s Hang Seng Index slipped by 0.51% at 10:24 PM ET (3:24 AM GMT).

China’s Shanghai Composite gained 0.12%, while the Shenzhen Component climbed by 0.47%.

Japan’s Nikkei fell by 0.36%, while South Korea’s KOSPI lost 0.23%.

Down Under, the ASX index dipped 1.29%.

Investors are also eyeing Fed Chairman Jerome Powell’s comments for signals of stimulus measures and negative interest rates during a virtual discussion later in the day.