Stocks slipped Thursday in Asia after moderate Wall Street downturns raised concerns about the possibility of the US and China failing to reach a trade deal next year.
Hong Kong led the region with its Hang Seng Reference Index
drops 1.6%. Shanghai Composite Index
lost 0.4% while Japan's Nikkei 225
gave up 0.8%.
A published report suggests that the Phase 1 Preliminary Trade Pact should not be completed this year as negotiators continue to combat differences. A Reuters report cites an unnamed Trump administration official saying that an agreement may not be reached, but is more likely to reach an agreement.
Comments have frightened investors who are already shaken by the possible knock on negotiations of US Congress resolutions expressing support for human rights in Hong Kong, where political protests linger for months.
China condemned the moves of US lawmakers to throw their support behind protesters in Hong Kong, threatening "strong countermeasures".
“Asia has been nervous about the state of trading playing all week with stocks from the former China that are lower. Early-morning action this morning suggests that a cautious walk to the exit can turn into a recalcitrant one for himself, "Jeffrey Halley of Oanda said in a comment.
Investors hope the two largest economies in the world can make the deal before new and more harmful tariffs go into effect on December 15 for about $ 160 billion in Chinese imports, which will cover smartphones, laptops and other consumer goods.
Beijing wants Washington to first agree to a broader tariffs on Chinese goods.
"Ac the deal will not be concluded before the end of the year, then all of a sudden this uncertainty comes back around what will happen around December 15, "said Scott Ladner, Chief Investment Officer at Horizon Investments." Are the tariffs back on the table? was expecting that this would not happen. "
In other Asian trade, South Korean Kospi
dropped 1.3%, the Australian S&P ASX 200
lost 0.7% and base indices in Taiwan
Tokyo Electron chip maker
sank in Tokyo trading, as did Screen Holdings
. In Hong Kong, Wharf Real Estate
and AIA Group
have fallen. Samsung
and SK Hynix
decreased in South Korea while Beach Energy
retreated in Australia.
On Wall Street overnight, technology stocks took the biggest losses, along with communications services and industrial stocks. Energy stocks have seen big gains as crude oil prices rebound.
Sales have driven major US indices since their last highs ever.
The S&P 500 Index
dropped 0.4% to 3,108.46. The Dow Jones industrial average
lost 0.4% to 27 821.09 while Nasdaq
slides 0.5% to 8 526.73.
The growing investor optimism that the US and China are making progress on a restricted trading deal has helped pave the way for market gains in recent weeks, including a series of rising values for major stock indices.
This optimism eclipsed Wednesday as investors weighed in on the effects of higher tariffs next month.
The two countries have raised billions of dollars in tariffs on each other's goods in the fight against China's trade surplus and technological ambitions. This is weighing on global trade and threatening to reduce corporate revenue and global economic growth, which is already showing signs of slowing down.
Benchmark crude oil
CLZ19, + 3.08%
threw 11 cents to $ 56.90 a barrel in e-commerce on the New York Stock Exchange. It rose $ 1.66 on Wednesday to reach $ 57.01 a barrel. Brent crude oil
international standard, dropped from 15 cents to $ 62.25.
slipped to 108.52 JPY from 108.59 JPY on Wednesday.