GLOBAL MARKETS-China shares slip after Party’s party, others firm ahead of U.S. jobs data

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By Hideyuki Sano

TOKYO, July 2 (Reuters) – Chinese shares dropped on Friday, a day after China’s Communist Party celebrated its centenary, while other regional markets held firm following Wall Street’s ascent to record highs ahead of U.S. jobs data due out later in the global day.

Japan’s Nikkei gained 0.3% and most other markets held on to slim gains but MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.7%, due to decline in Chinese and Hong Kong shares.

Shanghai Composite fell 1.2%, amid speculation the Chinese central bank could begin tightening monetary policy, and some possible unease among overseas investors over President Xi Jinping’s warning to foreign powers in a speech to mark his party’s centenary.

“It is hard to expect loose monetary conditions like before,” said Masahiko Loo, portfolio manager at AllianceBernstein in Tokyo.

“Foreign investors are probably turning cautious after hawkish rhetoric from China’s President Xi Jinping…

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