Asian markets mixed after US shares forge new highs
SHARES were mostly higher in Asia on Wednesday after a fresh set of record highs on Wall Street, spurred by encouraging signs on trade talks between the U.S. and China.
Japan’s Nikkei 225 advanced 0.3% to 23,437.77 while the S&P ASX 200 in Australia climbed 0.9% to 6,850.60. South Korea’s Kospi gained 0.3% to 2,127.85. The Hang Seng in Hong Kong was almost unchanged at 26,916.84. The Shanghai Composite index lost 0.2% to 2,900.47.
Shares fell in Malaysia but rose in Taiwan and elsewhere in Southeast Asia.
Investors have grown more hopeful over trade negotiations as the world’s two largest economies continue to keep their rhetoric in check. That’s a clear difference from earlier this year, when a sharp comment from either side would seemingly silence any ongoing talks and worsen relations.
The latest signals indicating that China and the U.S. are making progress toward a deal on trade have been particularly encouraging, as new U.S. tariffs are set to hit Dec. 15 on many Chinese-made items on holiday shopping checklists, such as smartphones and laptops.
Investors hope that Washington and Beijing can agree on terms of a deal that halts their trade dispute, or at least stops it from escalating.
President Donald Trump said Tuesday that “We’re in the final throes of a very important deal. I guess you could say one of the most important deals in trade ever.” That followed comments in Beijing, where the Commerce Ministry said negotiators for both sides had spoken on the phone and agreed to more talks aimed at reaching a deal. The latest development came a day after China announced new guidelines for the protection of patents and copyrights, which has been a key issue in the dispute.
While most of the news on trade tensions between Washington and Beijing pointed toward progress, the Department of Commerce announced a plan to begin requiring case-by-case approvals of all purchases by telecommunications companies of equipment that might pose a security risk.
The move follows an order by President Donald Trump in May declaring a national emergency as a first step toward barring such deals. Major telecoms gear suppliers like China’s Huawei Technologies and ZTE Corp. would likely be the hardest hit. The Commerce Department proposal could complicate efforts to reach a preliminary agreement that the two sides say is close to completion.