HONG KONG
\nFresh fears over headwinds facing the global economy saw Asian stocks plunge into the red Friday, in light holiday trading after US markets were closed for Thanksgiving.
\nChinese shares led the downward charge as Shanghai slumped by more than two per cent, with the tech sector hit hard by a Wall Street Journal report that Washington is urging its allies to avoid using equipment from Chinese telecoms giant Huawei.
\nWorsening tensions between the US and China have shattered confidence on global trading floors, and investors were sceptical of new claims from Donald Trump he was hopeful of resolving the bitter trade dispute between the two countries.
\n\u201cChina wants to make a deal. If we can make a deal, we will,\u201d Trump said, ahead of crunch talks with his Chinese counterpart Xi Jinping at the G20 in Argentina next week.
\nBeijing today also signalled its willingness to make progress, with vice minister of commerce Wang Shouwen telling a press briefing he hoped the two economic heavyweights could \u201cfinally find a solution to solve the problem\u201d.
\nBut the fractious recent Apec summit \u2014 which for the first time ever failed to issue a joint statement after US-China trade tensions boiled over \u2014 has set an ominous tone for the high-stakes summit in Buenos Aires.
\nThe world\u2019s top two economies have been locked in a trade war since the summer, with the US imposing punitive tariffs on Chinese goods worth US$250 billion per year. In retaliation, China imposed tariffs on US$110 billion of US goods.
\nWashington has threatened to toughen measures even further if the issue is not resolved before January.
\n\u201cInvestors are waiting for either a conclusion to the trade war or for Xi to present some meaningful stimulus,\u201d James Soutter, head of global equities at K2 Asset Management in Melbourne, told Bloomberg News.
\n\u201cChinese companies are actually more sanguine than investors, and in many cases still seeing growth, although not at the levels of last year.\u201d
\nSpeculation is growing that the People\u2019s Bank of China will again cut the level of cash that banks must hold in reserve, in a fresh bid to lower financing costs and blunt the economic impact of the trade dispute with the US.
\n\u201cThe (Chinese) central bank is worried about external shocks in the wake of the cantankerous Apec summit which highlighted a considerable political divide,\u201d said Stephen Innes, head of Asia-Pacific trade at trading group Oanda.
\n\u201cBut moves are unlikely to be substantial given the local markets are effectively in holiday mode.\u201d
\nWith markets in Japan and India closed for holidays, Hong Kong, Taipei and Seoul all chalked up losses today, as Asian stocks headed for a third week in the red.
\nSydney, which saw gains of 0.4 per cent, was a rare bright spot. European stocks steadied at the start of trading today following another volatile week for markets.
\nLondon and Paris were flat, while Frankfurt gained 0.1 per cent.
\nUS markets will open for a partial day today.
\nThe pound fell today, erasing its gains the previous day after Britain and the European Union struck a crucial draft deal on post-Brexit ties, as uncertainty again triggered unease.
\nBut analysts said many forex traders were biding their time.
\n\u201cCurrencies are also likely to stay within current ranges ahead of the Trump-Xi meeting next week, which could provide a deeper move depending on the outcome,\u201d Khoon Goh, head of Asia research at ANZ in Singapore, told Bloomberg News.
\nThe bearish mood was exacerbated by fresh falls in crude prices as traders took fright over risks of oversupply, after US authorities announced stockpiles had climbed for the eighth week in a row.
\n\u201cThe overhang from swelling US inventories which remain freshly minted in trader minds suggests the massive crude glut continues to outweigh OPEC output cut,\u201d Innes said.<\/p>\n","protected":false},"excerpt":{"rendered":"
HONG KONG Fresh fears over headwinds facing the global economy saw Asian stocks plunge into the red Friday, in light holiday trading after US markets were closed for Thanksgiving. Chinese shares led the downward charge as Shanghai slumped by more than two per cent, with the tech sector hit hard by a Wall Street Journal […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-36861","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n