Hong Kong's Hang Seng Index ( HSI ) had slipped 2.2% briefly in early trading. He recovered some of those losses later in the morning and had fallen by 1.6% in the last. The Japanese Nikkei 225 ( N225 ) decreased by 1.7%. South Korea Kospi ( KOSPI ) also dropped 1.4%. The Chinese Shanghai Composite Index ( SHCOMP ) is reported at 0.2%.
US stocks closed lower on Wednesday after Reuters history stated that the US and China may not be able to reach a first phase agreement as both sides have stepped up their demands.
US President Trump told reporters on Wednesday after US markets closed that he was not ready to make a deal with China because I don't think China has "reached the level" it wanted .
Tensions are also mounting between the two countries over the political situation in Hong Kong.
China strongly condemned the adoption on Wednesday of a bill in the US Senate on a bill that upholds human rights in Hong Kong. China has said it will take "strong counter-measures" if the US goes ahead with the bill.
US futures will fall again during Asian trading hours on Thursday. Futures for Dow ( INDU ) S&P 500 ( SPX )
and Nasdaq [1
9659002]  COMP
) decreased by 0.2%.