July 25, 2019: Asian markets were tempered Thursday after two days of gains as doubts emerged over next week's US-China trade meeting.
Reports that Donald Trump's Trade Representative Robert Lighthizer will lead a delegation to China next week to resume trade talks buoyed markets on Wednesday.
The meeting would be the first head-to-head since negotiations were cut short in May by Trump's surprise decision to hit China with more tariffs for what he called Beijing's backsliding.
But the release of a Chinese defence white paper that accuses Washington of undermining “global strategic stability” has softened hopes of a resolution to the long-running trade battle.
Traders had “growing doubts that anything meaningful will come out of next week's face to face between US and Chinese trade delegates as non-trade-related tensions start to flare”, said Stephen Innes of Vanguard Markets.
Investors were also wary of a slump in manufacturing activity, amid signs of Eurozone business growth stalling.
Innes said that weakness in US manufacturing would likely spill over into the services sector.
“When this happens in September or October, it will trigger one of the most significant US dollar and US asset sell signals of the year,” he added.
