SYDNEY – Asian shares made guarded gains on Monday as investors braced for another week of likely conflicting commentary on the trade dispute between China and the United States (US).
MSCI’s broadest index of Asia-Pacific shares outside Japan bounced 0.26 percent, after losing 0.4 percent last week.
Japan’s Nikkei firmed 0.8 percent in early trade, while Australian stocks rose 0.5 percent. E-Mini futures for the S&P 500 added 0.2 percent.
On Saturday, US national security adviser Robert O’Brien said an initial trade agreement with China is still possible by the end of the year, but warned Washington would not turn a blind eye to what happens in Hong Kong.
The comments add to worries that a Chinese crackdown on anti-government protests in Hong Kong could further complicate the talks.
“Markets are showing some signs of tiring of the steady drip feed of upbeat comments from US officials and no signs of a final agreement looking likely,” said Robert Rennie, head of financial market strategy at Westpac.
He noted six weeks had passed since the “phase-one” deal was agreed in principle yet there was still no deal in place. “Key for markets will thus be whether the Dec. 15 tariffs covering approximately $156 billion of largely technology imports are postponed and whether a deal can be signed ahead of that date, with press suggesting that these tariffs will be delayed to give negotiators more time.”
An ambitious “phase two” trade deal was also looking less likely, according to US and Beijing officials, lawmakers and trade experts. (Reuters)
