· Stocks slipped in Asian trade on Wednesday as investors awaited the signing of an initial U.S.-China trade deal, with sentiment somewhat dented by comments from the U.S. Treasury Secretary that tariffs would remain in place for now.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.48%, retreating from its 19-month peak marked on Tuesday, and Japan’s benchmark Nikkei shed 0.5%, off its four-week high hit the previous day.
Treasury Secretary Steven Mnuchin said late on Tuesday that the United States would keep in place tariffs on Chinese goods until the completion of a second phase of a U.S.-China trade agreement, triggering some profit-taking in risk assets.
· Japanese shares dropped on Wednesday, snapping a three-session winning streak after a top U.S. trade official said current tariffs on Chinese goods would stay for now, prompting investors to lock in profits from recent gains.
The Nikkei share average fell 0.45% to 23,916.58, retreating from a four-week high of 24,060 touched the previous day, while the broader Topix lost 0.54% to 1,731.06.
U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer said there was no agreement in place with China on further tariff reductions, taking the shine out of market enthusiasm about the upcoming trade deal.
The details of the deal are slated to be unveiled at 11:30 a.m. (1630GMT) when the two countries officially sign off on it.
Investors took profits from recent gainers such as Sony , SoftBank and Keyence, which fell 1.9%, 1.4% and 1.2% respectively.
The Nikkei has rallied nearly 20% from its August low on hopes of a truce in the tariff dispute.
· Chinese shares fell on Wednesday after the U.S. Treasury Secretary said tariffs on Chinese goods will stay in place, even as the two countries prepared to sign a Phase 1 trade deal later in the day.
At the midday break, the Shanghai Composite index was down 0.7% at 3,086.32 points, while the blue-chip CSI300 index was down 0.8%.
The United States will maintain tariffs on Chinese goods until the completion of a second phase of a U.S.-China trade agreement, U.S. Treasury Secretary Steven Mnuchin said on Tuesday.
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· European stocks opened mixed on Wednesday as investors await the signing of the so-called “phase one” trade deal between the U.S. and China, with optimism slightly dented by comments from the U.S. Treasury.
The pan-European Stoxx 600 edged 0.1% higher at the start of trading, with retail climbing 0.4% to lead gains while chemicals stocks slid 0.3%.
A Chinese delegation is in Washington to ink the long-awaited interim agreement, but U.S. Treasury Secretary Steven Mnuchin said on Tuesday that the U.S. would maintain tariffs on Chinese goods until the completion of phase two.
Mnuchin also claimed that documents due to be released later on Wednesday will show that the “phase one” deal is fully enforceable and includes a vow from Beijing to refrain from currency manipulation.
· Thailand plans more investment measures to support economy
Thailand is planning additional measures to boost investment to support Southeast Asia's second-largest economy hit by weak exports and a strong baht THB=TH, its deputy prime minister said on Wednesday.
The country needs higher private investment, which has been low at only 16% of gross domestic product (GDP), Somkid Jatusripitak told a business seminar.
“We have to stimulate private investment at a time of the strong baht,” he said. “I’ve already talked with the customs and revenue departments, and there will be a package,” he added.
The Board of Investment (BOI) is working on the package, which will be offered to firms that must invest within six months and install equipment within a year.
Thailand usually promotes investment with tax incentives. The BOI’s board will meet on the package early next month, the agency has said.
Reference: Reuters, CNBC
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