The gains south of the border were even stronger for the week, rising at least 3.2 per cent, despite a quiet day on USA markets ahead of the Memorial Day long weekend.
US and China trade tensions flared as the Trump administration raised concerns about China's plan to impose a new security law in Hong Kong that threatens the autonomy of the city.
The US announced sanctions against a Chinese government institute and eight companies for human rights violations following China's move to impose a national security law to quash the pro-democracy movement in Hong Kong. Stocks in Europe closed mostly flat and on Wall Street finished mixed as investors prepared for a long weekend in the United States, the UK and elsewhere.
Despite the uneven finish, the three major stock indexes each ended the week more than 3% higher.
"It seems like China is going to be used as a punching bag for the upcoming elections", said Bob Shea, CEO and co-chief investment officer at TrimTabs Asset Management in NY. "It's anticipating improvement and we've seen all the bad news". China also opted against setting a Gross Domestic Product target for 2020 as the coronavirus batters the second-largest economy in the world.More news: '17% Londoners, 5% of United Kingdom residents have COVID-19 antibodies'
"The tension between the US and China might dictate the near-term movements of the markets", Mr. Khandelwal said.
"You have these doubts over China that is triggering this sell-off in oil, and it's going to gain steam".
Declining issues almost matched advancers on the New York Stock Exchange (NYSE) and the Nasdaq.
"There's just too much uncertainty, and that's going to likely keep on weighing on risk appetite", Moya said.
News about a potential vaccine from Moderna sent equities flying earlier in the week, with the Dow surging more than 900 points on Monday. The Dow Jones Industrial Average slipped 8.96 points, or less than 0.1%, to 24,465.16. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS lost 2.7%; Japan's Nikkei .N225 fell 0.8%.More news: Jordan Henderson sends message to Chelsea FC star N’Golo Kante
Analysts said extensive central bank stimulus continues to underpin sentiment and buoy equity markets.
Earlier, Secretary of State Mike Pompeo criticized Beijing's handling of the coronavirus outbreak, while a Chinese official said the country will not flinch from any escalation in tensions.
The July crude contract was down US$1.26 at US$32.66 per barrel and the July natural gas contract was up a little over a penny at almost US$1.87 per mmBTU. Brent settled at $35.13, down 93 cents on the day.
The dollar index =USD rose 0.331%, with the euro down 0.42% to $1.0903. The Japanese yen strengthened 0.01% versus the greenback at 107.62 per dollar.
Oil continued to bounce along the lows of the session, with USA benchmark West Texas Intermediate down 3.15 per cent to trade at US$32.85 per barrel.More news: Trump says may attend SpaceX manned rocket launch