Asian markets mostly up ahead of trade talks, Trump fears ease

HONG KONG: Asian markets mostly rose yesterday before keenly awaited trade talks between China and the US, while early worries over a double whammy for Donald Trump also eased.

While not expecting a major deal when officials from Beijing and Washington meet, investors are hopeful they can find a way out of the months-long row that has seen tariffs imposed on billions of dollars of goods and stock markets tumble.

Recent comments from US Commerce Secretary Wilbur Ross, signalling plans to delay a final decision on whether to impose duties on auto imports, have also provided some cheer.

Tokyo ended 0.6 per cent higher and Hong Kong added 0.5 per cent in the afternoon, while Seoul and Taipei each put on 0.1 per cent and Wellington closed up 0.5 per cent. Manila and Jakarta were also well up.

However, Shanghai finished 0.7 per cent down while Sydney shed 0.3 per cent, with political uncertainty in Canberra adding to selling pressure.

The day had started with a wobble as the US president’s legal troubles deepened when his long-time personal lawyer Michael Cohen admitted several charges including illegally using campaign contributions to pay off a porn star and a Playboy model ahead of the 2016 election.

Cohen also said he had been directed to do so “at the direction of a candidate for federal office” and with the aim of influencing the election.

The claim could put Trump in legal jeopardy and throws open the prospect Cohen is about to open up to lawyers for the Russia investigation.

Also Tuesday the tycoon’s one-time campaign chairman Paul Manafort was convicted on eight counts, including bank fraud, tax fraud and a failure to declare foreign bank accounts.

However, Richard Harris, chief executive officer at Port Shelter Investment Management, said he thought Trump would ride out the storm. — AFP