Asian markets cautiously rose in early trading Monday, following a volatile week for global markets as U.S.-China trade tensions increased.

Goldman Sachs on Sunday said that it does not expect a trade deal before the 2020 presidential election, and warned that the ongoing trade war is having a greater effect on the U.S. economy that first estimated. In a note to investors, the bank cut its growth forecast for the economy and said the risk of recession is rising as businesses reduce spending due to trade-war uncertainties.

Early Monday, China’s central bank set the midpoint for the yuan weaker than 7 per U.S. dollar for the third day in a row. The People’s Bank of China set the currency’s reference point at 7.0211 per dollar, weaker than Friday’s level but still stronger than what analysts had expected.

Hong Kong’s Hang Seng Index

HSI, +0.48%

  rose 0.3%, and the Shanghai Composite

SHCOMP, +0.70%

  gained 0.5%. South Korea’s Kospi

180721, +0.46%

  advanced 0.5%, while Taiwan’s Taiex

Y9999, +0.06%

  was about flat and Indonesia’s JSX Composite

JAKIDX, +0.32%

  rose slightly. Australia’s S&P/ASX 200

XJO, +0.02%

  was little changed. Markets in Japan and Singapore were closed for holidays.

Among individual stocks, Sunny Optical

2382, +3.49%

  and Tencent

700, +1.36%

  rose in Hong Kong, while HSBC

5, -1.25%

  fell. Samsung

005930, +1.39%

  and SK Hynix

000660, +1.50%

  gained in South Korea, while Rio Tinto

RIO, -2.61%

  slid in Australia.

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