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Asian markets were little changed in early trading Tuesday, as investors were rattled by a possible snag in a U.S.-Chinese trade truce following reports Beijing wants Washington to life punitive tariffs.
Japan’s Nikkei
NIK, +0.22%
was up 0.1% while Hong Kong’s Hang Seng Index
HSI, +0.08%
dipped 0.1%. The Shanghai Composite
SHCOMP, -0.33%
slipped 0.2% and the Shenzhen Composite
399106, -0.75%
fell 0.5%. South Korea’s Kospi
180721, +0.27%
rose 0.1% while benchmark indexes in Taiwan
Y9999, +0.00%
, Singapore
STI, +0.31%
, Malaysia
FBMKLCI, -0.39%
and Indonesia
JAKIDX, -0.46%
were mixed. Australia’s S&P/ASX 200
XJO, -0.55%
fell 0.5%.
Among individual stocks, Rakuten
4755, +0.68%
and Inpex
1605, +1.49%
rose in Tokyo trading. Casino operator Galaxy Entertainment
27, -1.17%
and Apple component maker Sunny Optical
2382, -0.82%
fell in Hong Kong. SK Hynix
000660, -1.53%
slipped in South Korea while Foxconn
2354, -2.03%
sank in Taiwan. BHP
BHP, +1.49%
gained in Australia while Virgin Australia
VAH, -1.61%
dipped.
Beijing wants 15% tariffs imposed in September on $125 billion of Chinese imports removed as part of a “Phase 1” deal in talks aimed at ending a trade war that threatens global growth, according to news reports. There was no sign whether President Donald Trump would agree, which raised the possibility of a new breakdown in negotiations.
“We see it fit to temper optimism for now,” said Vishnu Varathan of Mizuho Bank in a report.
On Wall Street, the Dow Jones Industrial Average
DJIA, +0.11%
and the Nasdaq
COMP, +0.02%
closed at record highs Tuesday. The S&P 500 index
SPX, -0.12%
closed just below the all-time high reached the previous day.
Gains have been driven by better-than-expected company earnings, interest rate cuts, hopes for a trade truce and a steadily growing economy.
The upbeat mood marks a pivot from the summer, when worries about trade, Britain’s potentially messy exit from the European Union and the slowing global economy loomed over the market.
China’s central bank helped ease worries about a possible liquidity crunch by cutting its base interest rate on a one-year loan by 0.05% to 3.25%.
Analysts said the People’s Bank of China was fill demands for credit while keeping financial system risks under control.
“This is a small step towards future policy rate cuts, and it also signals that China’s central bank will finally start to follow other central banks in lowering its policy rate,” Citigroup economists said in a report.
Benchmark U.S. crude
CLZ19, -0.35%
lost 31 cents to $56.92 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 69 cents on Tuesday to close at $57.23. Brent crude
BRNF20, -0.43%
, used to price international oils, declined 37 cents to $62.59 per barrel in London. It gained 83 cents the previous session to close at $62.96.
The dollar
USDJPY, -0.07%
declined to 109.03 yen from Tuesday’s 109.16.
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