Asia in red in line with the USA. Europe marks red week

After ending the worst semester since 2008, Europe should start trading on Friday in negative territory, with the trend of losses spreading at the start of the second half of the year.

In Asia, the continent’s major indices traded in the red and posted losses for the third consecutive day.

Asian markets were influenced by consumption data for the month of May in the US, which recorded a decline for the first time this year. Investors are still looking for Chinese President Xi Jinping’s visit to Hong Kong, a year after he imposed a national security law in the region.

In China, the Shanghai Composite was down 0.2% and the Hang Seng was closed for a holiday. In Japan, the Topix lost 1.3% and the Nikkei lost 1.6%. Finally, in South Korea, Kospi posted a 1% drop.

Futures for the Stoxx 600 Index, the Western European benchmark, were down 0.8%.

In major market moves, companies linked to tourism and airlines in China slipped, after reporting extraordinary spending on fuel. Already, chip factories in the region, specifically TSMC and Samsung, extended losses, while Micron Technology, the largest manufacturer of memory chips in the United States, ended negotiations on Wall Street for a decline, after financial expectations with consumers declined. Reduce spending on computers and mobile phones.

“Low US consumption data usually leads to lower global demand. It will affect export-dominated markets, particularly South Korea,” explains Cui Xuehua, an analyst at Meritz Securities for Bloomberg.

“Investors are also looking for clues about whether there are policies that benefit Hong Kong, such as reopening borders and increasing trade,” the analyst said of the Chinese president’s visit on Friday.