Global shares decline amid U.S.-China dispute, oil drops

Global shares floundered while the yen rose on Wednesday as markets in China struggled in regaining momentum after a long holiday. Dampened market mood could be attributed to the Sino-U.S. dispute while oil failed to extend high records due to weak demand.

Wall Street futures reversed after recording a positive start, with S&P E-mini futures shedding a 0.3% loss. In China, markets were frail as the blue-chip index .CSI300 declined by 0.6%. Australian shares dropped with a 0.8% setback.

In other zones, Hong Kong’s Hang Seng index advanced with 0.7% while South Korea’s KOSPI increased by 1%. MSCI’s broadest index of Asia-Pacific shares outside Japan also advanced with 0.3%.

“There is a distinct risk-off tone to greet China coming back from holiday,” said Stephen Innes of Axicorp.

Global financial markets have been in constant fluctuation as frail economic figures, worsening Sino-U.S. relations, and the pandemic brought more economic disruptions.