It turns out the US and China just might avert a trade war, but with US aircraft carriers being sent to waters near the Korean peninsula, some observers may be a little more worried about the regular kind.
China will offer the Trump administration better market access for financial sector investments and US beef exports to help avert a trade war, according to Chinese and US officials involved in talks between the two governments.
US President Donald Trump and Xi Jinping, his Chinese counterpart, decided at their first meeting in Florida last week that they needed rushed trade negotiations to produce results within 100 days. The two concessions on finance and beef are relatively easy for Beijing to make.
But just days after the US fired a barrage of cruise missiles at a Syrian air base, the Pentagon decided to deploy an aircraft carrier group to waters near the Korean peninsula in a move a US military official told the Financial Times was designed to be a “show of force”.
In Asia Pacific equities, futures tip Sydney’s S&P/ASX 200 index to climb 0.2 per cent at the open, while Tokyo’s Topix is set to gain 0.4 per cent and Hong Kong’s Hang Seng is expected to rise 0.2 per cent when trading begins.
Corporate earnings reports out today include J Front Retailing, Fukuoka REIT and BTG Hotels Group.
The economic calendar for Monday is workmanlike in its construction (all times Hong Kong):
- 07.50: Japan balance of payments current account balance
- 09.30: Australia Home loans
- 12.30: Malaysia palm oil production, exports and stockpiles
- 16.00: Taiwan imports, exports and trade balance