AFP, Hong Kong :
Most Asian markets reversed earlier losses Thursday as the US said it would renegotiate its free-trade deal with Canada and Mexico, soothing fears of a trade war after reports said President Donald Trump was considering leaving the pact.
Equities across the region started the day in the red following four days of gains and as traders assess the chances of Congress passing massive tax cuts unveiled Wednesday.
The White House said all three countries would revise the 22-year-old North American Free Trade Agreement (NAFTA) swiftly.
The news fuelled relief on trading floors as the tycoon has previously hit out at the agreement-calling it a “disaster” that has killed American jobs-as well as other deals the US has signed globally.
Jitters about a possible trade war were heightened this week when Washington slapped 20 percent tariffs on Canadian softwood lumber imports.
“It is my privilege to bring Nafta up to date through renegotiation,” Trump said in a White House statement. “I believe that the end result will make all three countries stronger and better.”
Most Asian markets reversed earlier losses Thursday as the US said it would renegotiate its free-trade deal with Canada and Mexico, soothing fears of a trade war after reports said President Donald Trump was considering leaving the pact.
Equities across the region started the day in the red following four days of gains and as traders assess the chances of Congress passing massive tax cuts unveiled Wednesday.
The White House said all three countries would revise the 22-year-old North American Free Trade Agreement (NAFTA) swiftly.
The news fuelled relief on trading floors as the tycoon has previously hit out at the agreement-calling it a “disaster” that has killed American jobs-as well as other deals the US has signed globally.
Jitters about a possible trade war were heightened this week when Washington slapped 20 percent tariffs on Canadian softwood lumber imports.
“It is my privilege to bring Nafta up to date through renegotiation,” Trump said in a White House statement. “I believe that the end result will make all three countries stronger and better.”
