3 weeks ago
Stock Market

Asian Equities Slip; Chinese Stocks Lower After Biggest Daily Gains in Three Years

Investing.com - Asian stocks slipped in morning trade on Tuesday, as investors await the next step on trade after U.S.

Investing.com - Asian stocks slipped in morning trade on Tuesday, as investors await the next step on trade after U.S. President Donald Trump announced the postponement of a closely watched deadline in early March in the previous session.

South Korea’s KOSPI was down 0.3% by 9:30 PM ET (02:30 GMT). North Korean leader Kim Jong Un arrived in Vietnam on Tuesday for a summit with Trump, who is expected to arrive in Hanoi later today.

White House spokeswoman Sarah Sanders said earlier that the two would meet for a one-on-one conversation this evening, followed by more meetings on Thursday.

On Monday, Trump told reporters he and Kim would have "a very tremendous summit."

"With complete Denuclearisation, North Korea will rapidly become an Economic Powerhouse. Without it, just more of the same. Chairman Kim will make a wise decision!" said Trump.

Meanwhile, China’s Shanghai Composite and the Shenzhen Component slipped 0.03% and 0.4% respectively. Hong Kong’s Hang Seng Index fell 0.7%.

A trade deal between Beijing and Washington seemed to be edging even closer on Tuesday after Trump said the two sides “are going to have a signing summit” and that they are “getting very very close,” although he cautioned it is possible that the deal "might not happen at all."

Chinese stocks recorded the biggest daily gains since 2015 on Monday after Trump announced a delay in tariffs on Chinese goods, citing “substantial progress in trade talks with China.”

Elsewhere, Japan’s Nikkei 225 fell 0.5%, while Australia’s ASX 200 slid 1.2%.

Oil stocks underperformed as crude slumped more than 3% on Monday following a tweet from Trump to OPEC that prices were “getting too high.”

Santos declined 2.7%, Woodside Petroleum slipped 0.75% and Beach Energy shed 0.49%.

Looking ahead, a hearing from Federal Reserve Chairman Jerome Powell is expected to receive some focus as investors await the latest read on monetary policy and discussion of the central bank’s balance sheet.