AFP, Hong Kong :
Asian markets were mixed Monday as investors look ahead to a week chock-full of crucial events, including high-level trade talks between China and the United States.
Hopes that a deal can be struck between the world’s top two economies have helped fuel a rally this month in global equities, which had been hammered in December.
While there have been conflicting reports on the likelihood of an agreement to end the trade war, analysts say it is in the interests of both sides to reach a deal, with China’s economy stuttering and President Donald Trump gearing up for his re-election campaign.
“Although coming to an agreement is still tricky, both sides have little incentive to escalate tensions,” said Tai Hui, chief market strategist for Asia-Pacific at JP Morgan Asset Management.
“Markets will at least expect an extension of the truce in tariff increases beyond early March, while more difficult issues are still being worked on by both sides.”
As well as the Wednesday-Thursday meeting in Washington, dealers also have in their sights the Federal Reserve’s latest policy meeting, where the central bank’s statement will be pored over for an idea about its interest rate plans.
Asian markets were mixed Monday as investors look ahead to a week chock-full of crucial events, including high-level trade talks between China and the United States.
Hopes that a deal can be struck between the world’s top two economies have helped fuel a rally this month in global equities, which had been hammered in December.
While there have been conflicting reports on the likelihood of an agreement to end the trade war, analysts say it is in the interests of both sides to reach a deal, with China’s economy stuttering and President Donald Trump gearing up for his re-election campaign.
“Although coming to an agreement is still tricky, both sides have little incentive to escalate tensions,” said Tai Hui, chief market strategist for Asia-Pacific at JP Morgan Asset Management.
“Markets will at least expect an extension of the truce in tariff increases beyond early March, while more difficult issues are still being worked on by both sides.”
As well as the Wednesday-Thursday meeting in Washington, dealers also have in their sights the Federal Reserve’s latest policy meeting, where the central bank’s statement will be pored over for an idea about its interest rate plans.
