U.S. stock futures slip after tariff hike, Asia shares eke out gains

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U.S. stock futures slip after tariff hike, Asia shares eke out gains
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U.S. stock futures fell and Asian shares held onto earlier-pared gains on Friday...

TOKYO - U.S. stock futures fell and Asian shares held onto earlier-pared gains on Friday after U.S. President Donald Trump’s tariff hike on $200 billion of Chinese goods took effect, raising tensions between the world’s two biggest economies despite ongoing talks.

MSCI’s broadest index of Asia-Pacific shares outside Japan, which dropped more than 1 percent early Friday, remained where they were when tariff increase kicked in, up 0.3%.European stock futures point to gain of 0.5-0.6 percent in European stocks, which closed on Thursday before Trump’s comments about receiving a “beautiful” letter from Chinese President Xi Jinping.

That has encouraged some investors to cling to hopes that the U.S. administration could revoke the new tariff hike once a deal is reached. On Iran, Trump said he could not rule out a military confrontation after Tehran relaxed restrictions on its nuclear program in response to U.S. sanctions imposed following Trump’s withdrawal of the United States from the accord with a year ago.It stood just about two basis points above the three-month bill yields, which stood at 2.424 percent.

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