1 month ago
Stock Market

Asian Equities Fall After Losses on Wall Street; Trade Talks Make Little Progress

Investing.com - Asian equities fell in morning trade on Friday after the U.S. markets closed lower overnight following the release

Investing.com - Asian equities fell in morning trade on Friday after the U.S. markets closed lower overnight following the release of U.S. retail data that showed the sector recording its biggest drop in nearly a decade.

China’s Shanghai Composite and the Shenzhen Component were down 0.6% and 0.3% respectively by 10:00 PM ET (3:00 GMT). Hong Kong’s Hang Seng Index slid 1.6%.

South Korea’s KOSPI fell 1.5%. Index heavyweights Samsung Electronics (KS:005930) and SK Hynix both fell more than 2%.

Meanwhile, Japan’s Nikkei lost 1.3%. Down under, Australia’s ASX 200 edged up 0.2%.

China's Consumer Price Index came in at 1.7% higher than a year ago, the National Bureau of Statistics said on Friday. That compared to the expected 1.9%.
Meanwhile, producer inflation rose just 0.1% from a year ago, lower than the forecasted 0.2% rise.

Overnight, U.S. stocks closed lower after official data showed the country’s retail sales in December came in far below expectations.

Retail sales fell 1.2% in December, according to The Commerce Department. It was their biggest monthly drop since September 2009.

Renewed uncertainty surrounding Trade tensions between the U.S. and China also weighed on sentiment. Citing three unnamed U.S. and Chinese officials, Bloomberg reported that the two countries have made little progress so far during their discussions in Beijing this week. They have failed to narrow the gap on issues related to structural reforms to China’s economy, according to the report.

The news came one day after U.S. President Donald Trump said the talks were going “very well,” and that he is open to extend the March 1 deadline to more than double tariffs on $200 billions of Chinese goods if the two sides get closer to a deal.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin met with Chinese Vice Premier Liu He on Thursday. They are expected to meet Chinese President Xi Jinping later today, according to the South China Morning Post.