Major Asian stock markets declined Tuesday as traders looked ahead to a meeting between the American and Chinese presidents amid hopes for renewed trade talks.
The leaders of the U.S. and China are expected to meet on the sidelines of the G-20 meeting in Osaka, Japan. Trade negotiators from the two nations recently have been in contact, discussing ways to resolve their disputes and “consolidate the important consensus” ahead of the summit, the Associated Press reported.
Benchmarks in Tokyo, Shanghai and Hong Kong declined. Seoul and Sydney were little-changed.
Investors were encouraged by the announcement that top U.S. and Chinese negotiators, Trade Representative Robert Lighthizer and Vice Premier Liu He, talked Monday by phone. No details were released.
Traders looked ahead to a planned meeting between Presidents Donald Trump and Xi Jinping at this week’s Group of 20 meeting of major economies in Japan. Forecasters expect the leaders to reassure financial markets by agreeing to revive trade talks without a timeline or committing to any details.
The conflict over Beijing’s technology ambitions and trade surplus weighed on global trade amid fears it will depress global growth. Tensions have worsened after Washington tightened sanctions on Chinese tech giant Huawei.
“Both presidents have a very low bar of merely agreeing to resume trade talks, without having to iron out any of the sticking points at the G20,” said Chang Wei Liang of Mizuho Bank in a report.
The realities of achieving a settlement “will probably be relegated to the backseat as the ‘feel good’ factor of the G20 displaces caution,” Chang said.
Japan’s Nikkei NIK, -0.62% fell 0.8% and Hong Kong’s Hang Seng Index HSI, -1.24% retreated 1.3%. The Shanghai Composite SHCOMP, -1.18% fell 1.8%. South Korea’s Kospi 180721, -0.37% dropped 0.4%, while benchmark indexes in Taiwan Y9999, -0.67% , and Singapore STI, -0.01% fell as Indonesia’s JAKIDX, +0.39% rose. Australia’s S&P/ASX 200 XJO, -0.07% was down 0.2%.
Among individual stocks, Inpex 1605, -2.38% and Sony 6758, -2.14% fell in Tokyo trading, while Takeda Pharmaceutical 4502, +1.31% gained. In Hong Kong, Wharf Real Estate 1997, +1.08% rose while Tencent 700, -1.97% and Sands China 1928, -1.76% dropped. LG Electronics 066570, -1.23% declined in South Korea, and Taiwan Semiconductor 2330, -1.04% fell in Taiwan. Beach Energy BPT, -0.13% and Oil Search OSH, -1.11% sank in Australia.
Add Comment