Asian markets fail to rally after Trump's harsh words
- Asian Market
- 3 months ago
Asian shares struggled to follow the global rally on Tuesday after Donald Trump's comments which made a ceasefire of the trade war betwee the U.S. and China very unlikely.
Japan's Nikkei .N225 notched up 0.4 percent, however MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was all but flat.
E-Mini futures for the S&P 500 ESc1 eased back 0.35 percent, after rising sharply overnight.
Trump has stated it is "highly unlikely" that he would accept Beijing's demands to hold off an increase in tariffs which are expected to be raised to 25% from the current figure of 10% on $200 billion worth of Chinese imports.
All of the aforementioned is certainly going to make the upcoming meeting between Trump and Xi Jinping at the G20 meeting in Buenos Aires even more intriguing.
Sean Callow, a senior FX analyst at Westpac, Sydney commented “Trump’s pessimistic view on the chances of a game-changing China trade deal may puncture global equity markets’ optimistic start to the week, combined with last week’s harsh report from the U.S. trade representative, investors have only the flimsiest hope that the Trump-Xi meeting in Argentina will amount to more than a hill of soybeans.”
That put trade-sensitive currencies, including the Australian dollar AUD=D3, on the defensive, while the dollar lost some ground on the safe haven yen to 113.47 JPY=D3.
The euro edged up a shade to $1.1333 EUR= and the dollar dipped to 97.038 .DXY against a basket of currencies.
Source: Smart Trend Team/Reuters