STI closes 0.53% lower as Trump fires at China tech

THE Straits Times Index (STI) fell 13.59 points or 0.53 per cent to 2,545.51 on Friday as US president Donald Trump's growing attack on the Chinese tech sector sent Asian stock indices lower. Punters continued to hope for a US stimulus package to keep the global economic recovery on track.

Ipek Ozkardeskaya, senior analyst at Swissquote Bank, said: "Trump prohibited US firms from doing business with the most popular Chinese tech companies TikTok and WeChat due to national security issues. These actions also aim to curb China's rising tech power and escalate the cold war between the two countries."

The Hang Seng Index shed 1.60 per cent and the Shanghai Composite fell 0.96 per cent, while gold was headed for its best week since the global financial crisis. The Nikkei fell 0.39 per cent and the KLSE slipped 0.66 per cent.