SINGAPORE – Asia-Pacific markets were subdued in early Tuesday trading as investors weighed in on a possible thaw in U.S.-China trade relations as US President Joe Biden hoisted the idea of tariff cuts on Chinese goods.
In Japan, the Nikkei 225 fell 0.4% in early trading, while Topix was down 0.2%. South Korea’s Kospi fell 0.39 per cent.
In Australia, the S & P / ASX 200 was just below the flat line. MSCI’s broadest index of Asia-Pacific equities outside Japan was 0.11% lower.
In economic data for the coming day, Japan is set to report data on its production activity for May.
As consumer prices rose, so did That’s what the White House said last month that it looked at how these tariffs have contributed to inflation.
These tariffs came into force in 2018, when the Trump administration imposed billions of dollars in tariffs on Chinese goods, and Beijing retaliated with similar sanctions, dragging both sides into a protracted trade war.
“Markets seemed to take the news as an indication of a potential thaw in US-China trade tensions, although this is not the first time tariff reductions have been implemented,” wrote Taylor Nugent, an economist at National Australia Bank. “While a tariff cut would help ease US inflation in the margin, reports suggest that administration officials are concerned about appearing soft on China ahead of the November congressional election. “
In other trade news on Monday, the United States announced the Indo-Pacific Economic Framework with Asian partners, including Australia, Japan and South Korea. The group wants to establish international rules for the digital economy, supply chains, decarbonisation and rules that apply to workers.
Currencies and oil
– CNBC’s Ted Kemp contributed to this report.