
#Asian #markets #hit #trade #uncertainty #Hong #Kong #tanks
HONG KONG: Asian markets sank on Wednesday after Donald Trump failed to give investors enough confidence on progress in China trade talks, while Hong Kong was hit again as the city became the target of more violent protests.
In a much-anticipated speech on Tuesday, the president went into election mode, hailing a strong economy and saying a trade deal was close but also warning he could raise tariffs if he doesn’t get his way. .
Global equities have been on a roll for weeks on hopes that the economic superpowers will hammer out a smaller deal as the first part of a broader one.
However, with the planned signing ceremony between Trump and Xi Jinping apparently pushed back from this month to December, and little news about developments of late, traders are nervous.
“We’re close, a trade deal with China could be an important step, it could be soon,” Trump said at the Economic Club of New York.
But then he warned: “If we don’t do a deal, we’re going to increase these tariffs significantly”. “The same will be true for other countries that mistreat us,” he added.
The remarks were seen as a major setback for markets, which had hoped he would provide some updates on trade talks, after Trump denied China’s claims last week. That both have plans to remove some of the tariffs. progress in negotiations.
– Hong Kong’s Night of Fury –
“The president declined to comment on whether a rollback in tariffs is part of a Phase One deal, saying only that he would only agree to what is beneficial to American businesses,” Stephen at AxiTrader Innes said.
“At this point, the market may have to wait until the actual signature of the deal (or not) to get confirmation on the tariff rollbacks. And while markets are still in the territory of a demilitarized trade war, investors may be interested in tariff rollbacks.” Live in limbo.”
Tokyo closed the morning session lower by 0.9 percent, Shanghai and Sydney were down 0.5 percent, Seoul was down 1 percent and Singapore was down 0.7 percent. Wellington, Taipei, Manila and Jakarta were also well down.
Adding to the negative mood were renewed fears of unrest in Hong Kong after the city faced a night of anger as months of protests entered a more violent phase.
Police warned on Tuesday that the rule of law in the area was “on the brink of total collapse”.
Businesses were shut down for another day of chaos, with transport systems partially shut down and businesses closed.
Hong Kong’s Hang Seng index sank more than two percent in early trade, having lost the same amount on Monday, with a small recovery on Tuesday.
Property and real estate firms were the biggest losers, with Swire Properties, Sinoland and Hendersonland falling more than three percent, while New World Development fell more than four percent.
On currency markets, uncertainty over trade talks weighed on the yuan, which was hovering around 7.02 per dollar, having fallen below the seven mark earlier this month for the first time since early August.
And New Zealand’s dollar rose more than 1 percent after the country’s central bank held off on cutting interest rates, confounding expectations, as it said it saw signs of life in the economy.
– Important data around 0230 GMT –
- Tokyo – Nikkei 225: Down 0.9 percent at 23,303.13 (break)
- Hong Kong – Hang Seng: Down 2.1 percent at 26,508.16
- SHANGHAI – Composite: Down 0.5 percent at 2,900.85
- Pound/Dollar: UP to $1.2857 from $1.2852 at 2100 GMT
- Euro/pound: UP at 85.63 pence from 85.65 pence
- EUR/USD: UP $1.1012 to $1.1009
- Dollar/yen: Down to 108.92 yen from 108.97 yen
- West Texas Intermediate: Down 14 cents at $56.66 a barrel
- Brent North Sea crude: down 14 cents at $61.92 a barrel
- New York – Dow: Unchanged (close) at 27,691.49
- LONDON – FTSE 100: UP 0.5 percent at 7,365.44 (close)