Stocks slipped on Thursday in Asia after a slight decline on Wall Street because of concerns that the US and China may not reach a trade agreement before next year.
Hong Kong led the region with its Hang Seng benchmark index.
decreasing by 1.6%. Shanghai Composite Index
lost 0.4% while Japanese Nikkei 225
gave up 0.8%.
The published report indicated that the "Phase 1" preliminary trade pact may not be completed this year, as negotiators continue to struggle for differences. The Reuters report mentions an unnamed official of the Trump Report, according to which it is possible that an agreement will not be reached, but is more likely to happen.
In the comments, investors have already twisted a possible blow to the US Congress resolutions in which they expressed their views. promoting human rights in Hong Kong, where political protests last for months.
China condemned the steps of US lawmakers to discard support for demonstrators in Hong Kong, threatening "strong countermeasures".
Nervous about the state of the trade playing all week with former China stocks underperforming. Early stock this morning suggests that a cautious walk to the east can turn into an unfortunate person for himself, ”said Jeffrey Halley of Oanda in a comment.
Investors hope that the world's two largest economies can agree before the new and more damaging tariffs come into effect on December 15, with about $ 160 billion in Chinese imports. These obligations would apply to smartphones, notebooks and other consumer goods.
Beijing wants Washington first to agree to a wider return of customs duties on Chinese goods.
"If an agreement is not reached before the end of the year, then this uncertainty will suddenly return to what will happen around December 15," said Scott Ladner, Horizon Investments Chief Investment Officer. “Are tariffs again on the table? The market certainly began to expect this not to happen. “
In other Asian trading in South Korea
dropped 1.3%, Australian S&P ASX 200
lost 0.7% and reference indices in Taiwan
Within the inventory, the manufacturer of Tokyo Electron chips
dropped in Tokyo as well as Screen Holdings
. In Hong Kong, Wharf Real Estate
and AIA Group
and SK Hynix
dropped in South Korea while Beach Energy
retreated in Australia.
Technology stocks as well as communications services and industrial supplies suffered the most severe losses on Wall Street overnight. Energy price stocks saw big gains as oil prices rose again.
Sales pushed major US stock indices out of recent highs.
S&P 500 Index
decreased by 0.4% to 3,108.46. Dow Jones Industrial Average
lost 0.4% to 27,821.09 while Nasdaq
COMP, -0.51% (19659003) slipped by 0.5% to 8,526.73.
Growing optimism among investors that the US and China have progressed towards a limited trade agreement has helped pave the way for market gains in recent weeks, including a chain of all periods of top stock indices.
This optimism subdued on Wednesday as investors considered the implications that additional tariffs will bring next month.
Both countries raised tariffs for billions of dollars of their goods to combat China's trade surpluses and technological ambitions. This affects trade around the world and threatens to reduce corporate profits and global economic growth, which is already showing signs of slowdown.
CLZ19, + 3.08%
got rid of 11 cents at $ 56.90 per barrel in e-commerce on the New York Mercantile Exchange. On Wednesday, it rose by $ 1.66 to equal $ 57.01 per barrel. Brent crude oil
international standard, gave up 15 cents to $ 62.25.
dropped to 108.52 yen from 108.59 yen on Wednesday.