Asian shares edge higher, but worry about China persists

Sydney — Asian stocks nudged higher on Thursday after see-sawing through a subdued session on concern over China’s economic outlook, while an anti-climactic end to the latest chapter in the Brexit saga offered the pound a moment’s peace.

Fresh news was thin on the ground leaving MSCI’s broadest index of Asia-Pacific shares outside Japan up a slight 0.2%. Japan’s Nikkei was almost flat after dithering in both directions.

Spread-betters pointed to a softer start for the major European bourses, while e-mini futures for the S&P 500 drifted down 0.26%.

China’s blue-chip index recouped early losses to gain 0.4%. It had been weighed by a fall in the country’s second largest home appliances maker, Gree Electric, after it warned of slower profit growth as the economy loses steam.

China’s Premier Li Keqiang took to the radio to promise increased government investment this year. The country’s central bank did its part by injecting more cash into the financial system, bringing the amount for the week to a massive 1.14-trillion yuan ($168.74bn).

Stoking some caution was news that a bipartisan group of US legislators introduced bills on Wednesday that would ban the sale of US chips or other components to Huawei Technologies or other Chinese telecommunications companies that violate US sanctions or export control laws.

That came shortly before the Wall Street Journal reported federal prosecutors were investigating allegations that Huawei stole trade secrets from US businesses.

Such moves could inflame tensions between Beijing and Washington and make a trade deal yet harder.

Separately, Handelsblatt reported the German government is actively considering stricter security requirements and other ways to exclude Huawei from a build-out of fifth-generation (5G) mobile networks.

Also lurking in the background were worries the US government shutdown was starting to take a toll on its economy.

White House economic adviser Kevin Hassett said the shutdown would shave 0.13% off quarterly economic growth for each week it goes on.