Rekindled US-China tensions hit Asian markets

ASIAN markets were dealt another blow on Thursday as optimism from the US-China trade truce was all but extinguished with the arrest of Huawei Technologies' chief financial officer (CFO) in Canada over potential violations of US sanctions on Iran.

CMC Markets' Margaret Yang told BT: "Asian markets were badly punched by fears of re-escalated US-China trade spat following the arresting of Huawei's CFO.

"Market sentiment turned sour on potential retaliation measures by China as this incident severely undermined their trade relationship and put the trade truce under threat."