Asian markets fell in early trading Thursday, following Wall Street’s lead as the U.S. and China appeared to brace for a prolonged trade standoff.
After last week’s escalation of tariffs, no new trade talks have been scheduled, and many analysts suspect a breakthrough will require an intervention at the top before the Group of 20 major economies meets next month in Osaka, Japan.
“For a deal, there needs to be a Trump-Xi call, which would enable a useful Lighthizer visit to Beijing,” said Derek Scissors, a China specialist at the conservative American Enterprise Institute. “Then the two leaders could meet in Osaka and compromise on at least one major issue: reinvigorating the talks.”
U.S. Treasury Secretary Steven Mnuchin is talking to Walmart
and other companies about finding ways to ease the pain if President Donald Trump goes ahead with plans to extend import taxes to the $300 billion in Chinese products that haven’t already been hit with tariffs, the Associated Press reported.
President Xi Jinping said China must prepare for difficult times, Reuters reported Wednesday, describing a “new Long March,” in which “we must overcome various major risks and challenges from home and abroad.”
fell 0.8%, and Hong Kong’s Hang Seng Index
slid 1%. The Shanghai Composite
retreated 0.3% while the smaller-cap Shenzhen Composite
dropped 0.6%. South Korea’s Kospi
slipped 0.2%, and benchmark indexes in Taiwan
were mixed. Australia’s S&P/ASX 200
Among individual stocks, SoftBank
tumbled in Tokyo trading after its U.K.-based ARM unit suspended business with Huawei. Sony
and Mitsubishi UFJ
also fell. In Hong Kong, Sunny Optical
and Country Garden
sank. SK Hynix
declined in South Korea, but LG Electronics
and Taiwan Semiconductor
slid in Taiwan. In Australia, BHP
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