Earlier on Tuesday’s market, stocks in Asia were mixed although they mostly rose. However, stock traders were trading cautiously as China wants to have another round of talks pertinent to the partial trade deal.
During the cautious period, Japan performed better than other Asian countries. Japanese Nikkei and Topix index significantly gained 1.87% and 1.56% respectively right after their comebacks from Monday’s holiday.
Meanwhile, its opponent in the trade dispute, South Korea, barely had any escalation. South Korea’s Kospi acquired approximately 0.04%.
Elsewhere in Mainland China, the country did not indicate a better performance despite agreeing its recent partial trade deal. Both the Shanghai composite and the Shenzhen composite was down 1.1% and 1.17% respectively.
Reportedly, one of the cases causing the deadline is the current price escalation of pork. With the epidemic plague of African swine fever, the pork price in China is currently up 69% on September compared to last year’s September.
While in Hong Kong, the market index did not get any better. Unrest protests damaged the market, making Hang Seng index fell up to 2%.
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China Wants Another Round of Talks with the US
Even though the agreement is arguably fresh from the oven, China demands another round of talks pertinent to the recent partial trade deal. The reason being is that China is starting to feel a disadvantageous impact for its side.
In sum, last week’s trade talks concluded that both countries have established trade deals in agricultural and intellectual property sectors. Furthermore, Washington is also willing to suspend the implementation of its new 30% tariffs to Chinese products.
Following the adjournment, China finds it unjust and demands the eradication of the tariffs instead. However, US Treasury Secretary Steven Mnuchin’s statement on Monday did not approve such thing. Instead, he expects the tariffs to take effect starting from December 15 if there prevail no deal between the two countries.
With the ongoing uncertainty, traders in Asia, also Pacific, trade stocks cautiously. Rodrigo Catril, senior foreign-exchange strategist at the National Australia Bank, briefly explained the phenomenon.
“We have started the new week in a more cautious mood with the US-China trade vibes now starting to show some signs of friction. China wants more talk time to iron out details and it also wants the tariff stick to go away, but overnight comments from Treasury Secretary Steven Mnuchin suggests otherwise,” he wrote in a morning note.
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