AFP, Hong Kong :
Asian markets were mixed on Friday but about the China-US trade talks returned to the fore after a report said Beijing officials had raised doubts about the chances of a long-term deal.
Investors were also spooked by a speech by Secretary of State Mike Pompeo, in which he called China “truly hostile” to the US, leading Beijing to accuse the White House of “viciously” attacking it.
The flare up comes just as the two sides put the finishing touches to a mini trade pact that seen as the first phase of a wider agreement, with top-level phone talks due to take place later Friday.
Recent signs of progress on the long-running dispute had provided some much-needed support to equity markets in recent weeks, with most markets posting some healthy gains.
Wall Street, where the S&P 500 had hit a record high Wednesday, turned lower after Bloomberg News reported that Chinese officials were sceptical they would be able to reach a comprehensive long-term deal.
It said they warned they would not budge on key issues, while they were also concerned about Donald Trump’s impulsiveness and were even worried about the chances of getting the current agreement finished.
“The article proved a not-too-subtle reminder of how quickly trade war sentiment can pivot and highlighting those fears that we all knew about but were perhaps was too wrapped up (in) the phase one euphoria to recognise,” said AxiTrader’s Stephen Innes.
“Specifically, the trust gap is the bridge too far and what’s going on behind the shiny veneer of an apparent trade detente, the thorny Hong Kong protest bill,” he added, referring to US lawmakers passing a bill defending civil rights in the financial hub.
Asian markets were mixed on Friday but about the China-US trade talks returned to the fore after a report said Beijing officials had raised doubts about the chances of a long-term deal.
Investors were also spooked by a speech by Secretary of State Mike Pompeo, in which he called China “truly hostile” to the US, leading Beijing to accuse the White House of “viciously” attacking it.
The flare up comes just as the two sides put the finishing touches to a mini trade pact that seen as the first phase of a wider agreement, with top-level phone talks due to take place later Friday.
Recent signs of progress on the long-running dispute had provided some much-needed support to equity markets in recent weeks, with most markets posting some healthy gains.
Wall Street, where the S&P 500 had hit a record high Wednesday, turned lower after Bloomberg News reported that Chinese officials were sceptical they would be able to reach a comprehensive long-term deal.
It said they warned they would not budge on key issues, while they were also concerned about Donald Trump’s impulsiveness and were even worried about the chances of getting the current agreement finished.
“The article proved a not-too-subtle reminder of how quickly trade war sentiment can pivot and highlighting those fears that we all knew about but were perhaps was too wrapped up (in) the phase one euphoria to recognise,” said AxiTrader’s Stephen Innes.
“Specifically, the trust gap is the bridge too far and what’s going on behind the shiny veneer of an apparent trade detente, the thorny Hong Kong protest bill,” he added, referring to US lawmakers passing a bill defending civil rights in the financial hub.
