Asian Shares slips as U.S.-China Trade Talks continue
Asian share markets slipped on Monday as investors waited for more clarity on U.S.-China trade talks.
Market sentiment remained fragile with civil unrest in Hong Kong, tensions in the Middle East and worries that a trade deal between the United States and China could take a long time to materialize. Market movements were further exaggerated by low volumes as Japanese markets were closed for a public holiday.
Over the weekend, the U.S. Trade Representative’s office issued a brief statement that characterized the two days of talks with China as “productive” and that a principal-level trade meeting in Washington would take place in October, as initially planned.
China’s Commerce Ministry described the talks as “constructive” in a brief statement, adding that they had also had a good discussion on “detailed arrangements” for October’s high-level talks.
Despite the optimistic tone, markets still remain unconvinced about the possibility of an imminent deal.
Investors were rattled by news on Friday that Chinese officials unexpectedly canceled a visit to U.S. farms this week following their two days of negotiations in Washington.
One Shanghai-based analyst at Tebon Securities said the cancellation had hit investor sentiment and could be a major drag on Chinese A-shares in the near term.