Yahoo Finance Asian Markets Fall; China’s Xi Promises to Lower Tariffs
Investing.com - Asian markets were mostly lower in afternoon trade on Monday as U.S.-China trade tension returned to focus.
Chinese President Xi Jinping said at the China International Import Expo on Monday that Beijing would lower import tariffs and continue to broaden market access.
Xi added that the expo "demonstrates China's consistent position of supporting the multilateral trading system and promoting free trade. It is a concrete action taken by China to advance an open world economy and support economic globalization."
His comment came after U.S. President Trump said on Friday that he would likely make a trade deal with China, adding that much progress had been made to resolve the two countries' differences. Trump's comments came after Larry Kudlow, his top economic advisor, expressed caution about talk of a possible U.S.-China trade agreement and downplayed the potential for a quick deal.
In Asia, China’s Shanghai Composite and the Shenzhen Componentt both slipped 0.5% by 1:50 AM ET (05:50 GMT). Hong Kong’s Hang Seng Index was down 2.1%.
Alcoholic beverage retailer China Resources Beer Holdings Co Ltd (MU:0291) acquired seven of Heineken’s China and Hong Kong businesses via its wholly-owned subsidiary China Resources Snow Breweries in a deal worth more than HK$2.35 billion (US$300 million), according to the company’s statement on Monday.
Shares of China Resources Beer slid 3.81% to HK$27.75 in the morning.
Heineken stated that if regulatory approval is obtained, the transaction is expected to complete in 2019.
Looking ahead, China will release October trade figures on Thursday.
Official data is expected to show that the country’s trade surplus widened to $36.2 billion last month from $31.7 billion.
Exports are forecast to have climbed 12.0% from a year earlier, slower than September's 14.5% increase, while imports are expected to rise by 14.0%.
Elsewhere, central banks in the United States, Australia and New Zealand are set to meet this week.
"There is not expected to be any change in policy from either central bank. But we continue to expect the Fed to lift interest rates 25 bpts in December to 2.50 (per cent)," Richard Grace, chief currency strategist and head of international economics at the Commonwealth Bank, wrote in a morning note.
The U.S. Fed raised borrowing costs in September for the third time this year. Robust economic growth combined with rising inflation is likely to keep it on track for another increase in December, despite mounting verbal pressure from the White House.
Japan’s Nikkei 225 slid 1.6%. The Bank of Japan’s Kuroda said at a speech at a business leaders' meeting in Nagoya that uncertainty from overseas and impact on Japan's economy continue to rise and that the central bank is aware that continued easing policies have been affecting the country's financial system stability. Going forward, the BoJ would continue monitoring risks of economic destabilisation, the balance of effects and costs of its current policy, said Kuroda.
Elsewhere, South Korea’s KOSPI dropped 0.5%.
Down under, Australia’s S&P/ASX 200 inched up 0.1%.
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