Asian stocks drop on concerns US and China may not reach a quick trade deal

Asian stocks report losses on fears US-China trade deal may remain elusive.
S&P 500 futures are also flashing red.
Larry Kudlow downplayed the potential for a quick trade deal.

Omkar Godbole FXStreet Contributor

The Asian equities are on the defensive on renewed US-China trade jitters.

At the time of writing, Japan's Nikkei is down 321 points or1.44 percent. Stocks in Australia, New Zealand, and South Korea are down 0.30 percent, 0.4 percent, and 1.4 percent, respectively.

Meanwhile, assurances from President Xi have, so far, failed to put a bid under the Chinese equities, leaving the Shanghai Composite down 1.06 percent on the day. What's more, the S&P 500 futures are reporting a 0.30 percent drop.

The risk-off tone is possibly due to concerns over whether trade tensions with China can be mended.

The US President Trump said last week that the negotiations with China are progressing well. In response, the stock markets picked up a strong bid, the optimism, however, was short-lived as White House economic adviser Larry Kudlow on Friday downplayed the potential for a quick deal.

Looking ahead, the US midterm elections are likely to dominate the proceedings in the first half of the week. The focus will likely shift to geopolitics and central banks in the second half of the week.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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