Yahoo Finance Asian Stocks Mixed as Markets Await Developments on Proposed Trump-Xi Traded Talks
Investing.com - Asian markets were mixed on Monday as traders awaited developments on proposed trade talks between U.S. President Donald Trump and Chinese leader Xi Jinping.
China’s Shanghai Composite was up 0.1% by 12:30AM ET (04:30 GMT) while the Shenzhen Component slipped 0.3%. Hong Kong’s Hang Seng Index gained 1.0%.
Reports over the weekend said Trump and Xi may meet in November as trade tensions escalated in recent weeks. The reports came after the two governments announced on Thursday that lower-level trade talks would be held later this month to resolve intensifying trade disputes. A nine-member delegation from Beijing will hold meetings with U.S. officials later in the month, according to officials from both countries.
"This has given markets some reason for optimism that a de-escalation of Sino-US trade tensions is possible one side or other of November's US mid-term elections," Ray Attrill, head of foreign exchange strategy at the National Australia Bank, said in a morning note.
Soren Skou, CEO of A.P. Moller-Maersk, said the U.S. would get hit many times harder than other countries if a full-blown global trader war were to happen.
Skou said the fallout of the current protectionist wave “could easily end up being bigger in the U.S.”
“The first thing the American importers would do if tariffs are put on Chinese consumer goods would be to buy in Vietnam, in Indonesia or elsewhere in Asia,” Skou said at Maersk’s headquarters on Friday.
“Big U.S. consumer brands like Nike (NYSE:NKE) produce in all of Asia, not just in one country, so there will be a substitution effect.”
The Trump administration imposed duties on $34 billion of Chinese goods in July as they accused China of unfair trade practices, adding that they will impose tariffs on a further $16 billion on Aug. 23.
Trump warned earlier that the U.S. may eventually target the entire $500 billion in Chinese exports to the U.S.
“The other factor is that there’s a lot of stuff that’s now imported into the U.S. that just isn’t produced anywhere within the U.S.,” Skou said. “You can’t get Nike sneakers or iPhones that are produced in the U.S. So it will end up being pushed on to the consumer.”
Meanwhile, Australa’s S&P/ASX 200 edged up 0.1%. The Reserve Bank of Australia is set to release minutes on Tuesday. Index heavyweight BHP Billiton Ltd (AX:BHP) is due to report earnings this week.
Elsewhere, Japan’s Nikkei 225 slipped 0.2%, while South Korea’s KOSPI traded 0.1% higher.
Looking ahead, Markets are likely to focus on the upcoming Jackson Hole symposium, while analysts expect the Fed to raise rates at its next meeting.
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