Asian stocks slid followed by US political Scenario

Asian Stock Markets

Asian stocks slid on Friday as reports of more chaos in the Trump administration tested investors’ nerves, already frayed by fears that U.S. tariffs could hurt the global economy and trigger a trade war.

European stock futures point to a weaker start in Europe, with futures of Britain's FTSE FFIc1.FTSE and France's Cac FCEc1 down 0.1 percent. 

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS slipped 0.2 percent in early trade. Japan's Nikkei .N225 was down 0.6 percent. 

On Wall Street, the S&P 500 .SPX edged 0.08 percent lower on Thursday, marking its first four-day losing streak of 2018. The Nasdaq Composite .IXIC dropped 0.2 percent. 

U.S. shares hit a session low soon after the New York Times reported that U.S. Special Counsel Robert Mueller had issued a subpoena for documents related to U.S. President Donald Trump’s businesses. 

The Washington Post, meanwhile, reported that President Donald Trump has decided to remove H.R. McMaster as his national security advisor. 

The news came just days after following the recent departure of two key officials, former Secretary of State Rex Tillerson and top economic advisor Gary Cohn, from the Trump administration. 

The developments, together with the report earlier this week that Trump is seeking to impose tariffs on up to $60 billion of Chinese imports, cemented investor concerns that the administration is increasingly leaning towards protectionism. 

White House trade adviser Peter Navarro has said that Trump would in coming weeks get options to address China’s “theft and forced transfer” of American intellectual property as part of the investigation under Section 301.

Fears that the tariffs could disrupt synchronised global growth dwarfed recent strong economic data, including a fall in U.S. jobless claims. 

Any disruptions to the information sector will cost investors particularly dearly given the sector has been the main engine of the global share rally during the past decade. 

U.S. Treasuries yield stood little changed at 2.822 percent US10YT=RR in Asia after having hit a near two-week low of 2.797 percent on Thursday. 

In contrast, short-term bond yields rose as investors braced for a widely expected rate hike by the Federal Reserve next week, with the two-year yield hitting a 9 1/2-year high of 2.295 percent US2YT=RR.