Asian stocks drop following losses on Wall Street
|- Asian stocks trade flat-to-negative.
- China, US agree to resume trade talks in a phone call ahead of Xi.
Asian stocks are losing ground this Tuesday morning after their US counterparts reported losses for the second straight day.
As of writing, Japan's Nikkei and the Shanghai Composite are shedding 0.4% and 1.2%, respectively. Stocks in Australia are flatlined and the ones in Hong Kong are down 0.76%.
The S&P 500 fell 0.17% on Tuesday with energy stocks feeling the pull of gravity, courtesy of new US sanctions on Iran.
Markets may remain flat-to-negative ahead of the meeting between Trump and China’s President Xi Jinping this week at the Group of 20 summit in Japan. Chinese Vice-Premier Liu He reportedly discussed trade views on trade with US’ Robert Lighthizer and Steven Mnuchin via a phone call on Monday.
While both parties have agreed to keep communicating, the probability of a breakthrough deal in the near-term is quite low. Also, renewed tensions between the US and Iran will likely keep risk assets under pressure.
As for today, investors may take cues from Federal Reserve Chairman Jerome Powell's discussion on monetary policy during a speech in New York.
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