· A rally in global shares stalled on Wednesday, with Asian shares slipping from three-month highs, as the prospect of a rate cut by the Federal Reserve was countered by worries a Sino-U.S. first-stage trade deal could be delayed.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS shed 0.33% from Tuesday's three-month high while Japan's Nikkei .N225 lost 0.57% after hitting a one-year high the previous day.
Markets had erased gains after Reuters reported a U.S. administration official said an interim trade agreement between Washington and Beijing might not be completed in time for signing in Chile next month as expected.
· Japan’s benchmark Nikkei index pulled back from its the highest level in more than a year on Wednesday as conflicting signals from the U.S. government dampened optimism for a preliminary trade agreement with China.
The Nikkei index ended Wednesday down 0.57% at 22,843.12, its biggest decline in three weeks.
It was the first downturn for Japanese stocks in eight trading sessions, after a U.S. administration official told Reuters on Tuesday that an interim U.S.-China trade agreement might not be completed in time for signing at an Asia-Pacific Economic Cooperation summit in Chile on Nov. 16-17.
· China stocks ended lower on Wednesday, shadowed by renewed doubts over the prospects of a first-phase of the Sino-U.S. trade deal.
The blue-chip CSI300 index fell 0.5% to 3,891.23, while the Shanghai Composite Index also shed 0.5% to 2,939.32.
An interim trade agreement between the United States and China might not be completed in time for signing in Chile next month as expected but that does not mean the accord is falling apart, a U.S. administration official said on Tuesday.
Despite the trade concerns, foreign money continued to flow into the A-share market via the Stock Connect linking Hong Kong and the mainland as Beijing vowed more opening-up.
Investors were also watching corporate profits as the third-quarter earnings season will soon conclude.
· European stocks traded mixed Wednesday morning amid reports that China is reluctant to commit to President Donald Trump’s demands that it make significant purchases of American agricultural products.
The pan-European Stoxx 600 hovered around the flatline in early trade, with autos making 1.1% gains on the back of reported merger talks between Peugeot owner PSA and Fiat Chrysler. Tech stocks slipped 0.4% to lead losses.
Trump’s demands that China buy as much as $50 billion of U.S. farm products has become a major obstacle to trade talks between the world’s two largest economies, Reuters reported on Wednesday citing sources briefed on the negotiations.
Reference: Reuters, CNBC
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