Asian markets were broadly lower Friday as investors took their foot off the pedal after another healthy week, with eyes fixated on the next move in the China-US trade talks.
News out of Beijing that it had agreed a plan with the US to start rolling back tariffs if negotiations progress fired a rally in late business on Thursday, and helped the Dow and S&P 500 to more records.
The announcement fanned hopes the world’s economic superpowers—who are currently finalising a mini trade pact as part of a wider deal—can resolve their long-running tariffs war that has hobbled the global growth outlook.
It also eased worries about the negotiations caused by reports that a hoped-for signing ceremony this month between Donald Trump and Xi Jinping could be delayed until December.
“The elevation of discussion from a trade truce to a possible tariff rollback is important and suggests both China and the US have come under pressure to seal a deal,” said National Australia Bank’s Tapas Strickland, in a note.
But dealers were unable to carry the baton further in Asia after the White House failed to comment on the Chinese claims, while a report said there was some opposition within the administration to such a move.—AFP