Asian Shares Mixed As US-China Talks End With No Breakthrough

Asian stocks were trading mixed on Friday after U.S. and Chinese officials ended two days of meetings without reaching a breakthrough in a trade dispute.

The oil markets held steady while the dollar was buoyant ahead of U.S. Federal Reserve Chairman Jerome Powell’s big Jackson Hole speech that could bring a dovish surprise.

The Fed has penciled in two more interest rate hikes this year despite risks from trade conflicts and emerging market turmoil.

Earlier this week, U.S. President Donald Trump reiterated his criticism of the Fed’s monetary policy, saying he was “not thrilled” with the Fed for raising rates. It remains to be seen whether Powell would respond to Trump’s criticism.

China’s Shanghai Composite index was down 0.1 percent and Hong Kong’s Hang Seng index was declining half a percent after U.S.-China trade talks yielded no progress.

Japan’s Nikkei index was moving up 0.4 percent, with underlying sentiment helped by a cheaper yen after fresh exchanges of tariffs between the U.S. and China.

Electronics makers like Sony and Panasonic were on the rise while steelmakers such as Nippon Steel Sumitomo Metal and JFE were down over 2 percent.

Australia’s benchmark S&P/ASX 200 was marginally lower, dragged down by industrials after shares of Caterpillar Inc and Boeing Co fell sharply overnight on concerns over the deepening rift between Washington and Beijing.

The country could have a new Prime Minister today after several senior ministers resigned their posts.

South Korea’s Kospi average was losing 0.2 percent while New Zealand’s benchmark S&P/NZX-50 index was rising 0.1 percent.

Overnight, U.S. stocks finished modestly lower as the U.S.-China war escalated with a fresh round of tariffs on each other and investors assessed the likely political fallout from the legal woes of two former advisers to President Trump.

The Dow slid 0.3 percent, the S&P 500 eased 0.2 percent and the tech-heavy Nasdaq Composite shed 0.1 percent.

European markets fell slightly on Thursday as new details covering a “no deal” Brexit and trade war worries overshadowed positive economic data from the euro zone.

The pan-European Stoxx Europe 600 index eased 0.2 percent. The German DAX and the U.K.’s FTSE 100 both slid around 0.2 percent while France’s CAC 40 ended flat with a negative bias.

by RTTNews Staff Writer

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