US-China tensions weigh on global outlook pushing NZ shares lower

The S&P/NZX 50 Index declined 57.15 points, or 0.5 percent, to 11,636.26. Within the index, 29 stocks fell, 13 rose, and eight were unchanged. Turnover was a light $90.1 million.

Stock markets across Asia fell after Beijing said it would retaliate against a US order that China close its consulate in Houston, Texas, raising fears that a trade deal between the world's two biggest economies could be spiked. China’s foreign ministry ordered the US to close its consulate in Chengdu, the capital of the southwestern Sichuan province.

China's Shanghai and Shenzhen stock market fell more than 2 percent. Hong Kong’s Hang Seng dropped 1.8 percent and Australia’s S&P/ASX 200 fell 1.2 percent.

A weak lead from Wall Street added to the negative tone, with an unexpected increase in new jobless claims and mixed company earnings triggering a widespread sell-off that hit even the strongest tech names that have driven the recovery.