Asia markets down as US-China trade talks get under way

Jul 31, 2019: Asia markets were down Wednesday with talks underway in Shanghai in a bid to bring an end to the bruising yearlong US-China trade war.

Washington and Beijing have so far hit each other with punitive tariffs covering more than $360 billion in two-way trade.

US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will conclude two-day talks with their counterparts in China's financial capital on Wednesday.

But expectations began low and have taken a further hit after US President Donald Trump launched an attack on Beijing's negotiators which also rocked Wall Street traders on Tuesday.

“My team is negotiating with them now, but they always change the deal in the end to their benefit,” Trump tweeted.

Analysts said Trump's remarks will do little to ease the already tense relationship between Washington and Beijing.

His tweets gave “a stark reminder to investors that the US and China are no closer to an agreement and in fact, might be drifting farther apart,” said VM Markets Singapore managing partner Stephen Innes.

AFP/APP

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