Asian markets fell in early trading Wednesday, after President Donald Trump poured cold water over optimism for a trade deal as negotiations between the U.S. and China resumed.
In a series of tweets Tuesday morning, Trump criticized China for not buying more American agricultural products, and took credit for its slowing economy. He also said China was hoping to wait until after the 2020 election to make a trade deal, but vowed that terms of any such deal would be much tougher after he is re-elected. Even before Trump’s comments, there had been modest expectations for the new trade talks, with little chance seen of a breakthrough.
Meanwhile, investors were expecting the U.S. Federal Reserve to cut interest rates for the first time in more than a decade later Wednesday.
Japan’s Nikkei slid 1% NIK, -0.97% and Hong Kong’s Hang Seng Index HSI, -1.27% fell 1.3%. The Shanghai Composite SHCOMP, -0.73% retreated 0.8% while the smaller-cap Shenzhen Composite 399106, -0.59% lost 0.5%. South Korea’s Kospi 180721, -1.10% fell 1%, and benchmark indexes in Taiwan Y9999, -0.62% , Singapore STI, -0.22% and Indonesia JAKIDX, -0.31% all fell. Australia’s S&P/ASX 200 XJO, -0.26% slipped 0.2%.
Among individual stocks, Samsung 005930, -2.90% fell in South Korea after reporting a steep decline in second-quarter net profit. Fast Retailing 9983, -1.82% and SoftBank 9984, -1.41% fell in Tokyo trading, while Sony 6758, +5.24% surged after beating earnings expectations. In Hong Kong, insurer AIA Group 1299, -2.12% dropped, as did property developer Country Garden 2007, -1.47% , and iPhone component makers AAC 2018, -2.07% and Sunny Optical 2382, -2.03% after Apple posted slower iPhone sales. Apple AAPL, -0.43% manufacturer Foxconn 2354, -1.24% fell in Taiwan. In Australia, Beach Energy BPT, +1.19% rose.
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