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Reports stated that soon the U.S and China would meet to talk over the agreements of their phase one trade contract. Following this news, on the 31st of September, the Asian markets had given a mixed response.
The stock index of these Asian markets has shown trends of decline as well as advancement. Hong Kong Hang Seng index, Shanghai Composite, and Shenzhen composite had a 0.7%, 0.2%, and 0.9% elevation respectively.
While South Korea’s Kospi also showed a similar trend of 1% rise; whereas indexes in Singapore, Taiwan, and Indonesia displayed varied trends. On the other hand, Japan’s Nikkei 225 and Australia’s S&P/ASX 200 exhibited a 0.6% and 0.5% drop.
On Tuesday, The Wall Street Journal disclosed that the anticipated bilateral talks will take place on 15th August. It will encompass discussions on how China will satisfy the trade agreement both the countries agreed to earlier in January.
China has so far failed to keep up the pace needed to fulfill their end of the bargain of buying more US farm products. Likewise, America has also alarmed China with its recent clampdown against Chinese tech companies.
Seeing the recent decline in the US and China’s political relations, people do not have much hope with the trade talks. The chief global market strategists stated that these discussions would test the theory that a political disagreement should not result in economic contention.
With China claiming Taiwan as their territory, the HHS department’s secretary Alex’s visit to the disputed land might make relations more tensed. Especially since it is said to be the most prominent stop by a US officeholder in almost half a century.