Asian Shares Mixed Ahead of China-US Meeting

Shares wavered Wednesday in Asia as regional markets appeared to shrug off the latest North Korean missile test. But trading was light ahead of U.S. data releases and meetings later in the week between President Donald Trump and his Chinese counterpart, Xi Jinping.

KEEPING SCORE: Japan’s Nikkei 225 index gained 0.3 percent to 18,861.27 and Hong Kong’s Hang Seng rebounded to gain 0.3 percent to 24,326.99. The Kospi of South Korea was flat at 2,160.85. Australia’s S&P ASX 200 rose 0.3 percent to 5,876.20 and the Shanghai Composite index advanced 1.5 percent to 3,270,31. Markets in Southeast Asia were mostly higher.

TRUMP CHINA: Trade agreements and regional tensions will be in focus as Trump and Xi meet Thursday and Friday at Mar-a-Lago in Florida. While some analysts expect the two sides to keep friction to a minimum by following an agreed-upon script, others worry Trump’s past harsh criticism of China and mounting dissatisfaction with Beijing in American business circles auger ill for the summit.

QUOTABLE: “To some extent, the market’s imagination appear to be running wild with the possibilities of the outcome from this meeting, especially given the impulsiveness we have seen from President Donald Trump thus far on issues regarding China. This will likely cause many to stay on the side-lines ahead of the meeting,” Jingyi Pan of IG said in a commentary.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza