Asian Traders Remain Cautious as the Trade War Persists

Sentiment in the Asian and Pacific Rim was shaky today. Traders were reacting to ongoing mass protests in Hong Kong, as well as ongoing trade war comments from President Donald Trump. The two largest economic powerhouses remain embroiled in a contentious trade war. Asian markets also tracked a down day on Wall Street.

In Japan the Asian benchmark, the Nikkei 225, was up half a percent by the afternoon. The broader Topix index, in Tokyo was down 0.83 percent.

In Japanese corporate news shares of Japan Display, fell seven percent. The company announced plans to restructure and the company’s chief executive officer was stepping down.

Mass protests in Hong Kong, over the controversial extradition bill, weighed on the Hang Seng Index. By lunch, the index was down 0.87 percent but sank even lower to close down 1.87 percent.

On the mainland, in China, the indices recovered from early losses. The Shanghai composite was up a fraction. The smaller Shenzhen composite rose 0.32 percent and the Shenzhen component added 0.13 percent.

Asian Traders Digest Trade War Comments from President Trump

President Donald Trump said he had a “feeling” that a trade deal with China could be reached. He stressed, however, that he has no problem increasing tariffs is no deal is reached.

Trump, however, declined to set a deadline for placing new tariffs on another $325 billion of Chinese goods. He said that his relationship with Beijing is good but “testy.” He also claimed that China walked back commitments for a trade accord.