The Shanghai Composite Index lost 0.9 per cent to 2,929.09. Traders took profits before trading halts next week for the National Day holiday following an extended rise in prices, especially for tech stocks.
World shares were mostly higher Thursday after President Donald Trump suggested a costly tariff war with China could be resolved soon. Germany’s DAX advanced 0.5 per cent to 12,296.76 and the CAC 40 in Paris climbed 0.8 per cent to 5,626.55. Britain’s FTSE gained 1.1 per cent to 7,371.02. Wall Street looked set for gains, with futures for the Dow and the S&P 500 up 0.2 per cent.
US stocks rebounded Wednesday after Trump told reporters China wants “to make a deal very badly” and it “could happen sooner than you think.” “Investors have been ‘trade war’ bearish for so long that any sliver of optimism is cheered,” said Stephen Innes of AxiTrader in a report. In Asia, Tokyo’s Nikkei 225 picked up 0.1 per cent to 22,048.24 while Hong Kong’s Hang Seng gained 0.4 per cent to 26,041.93.
The Shanghai Composite Index lost 0.9 per cent to 2,929.09. Traders took profits before trading halts next week for the National Day holiday following an extended rise in prices, especially for tech stocks. “To avoid uncertainty, funds will sell and pocket their money,” the China Securities Journal said on its website.
Seoul’s Kospi was up 1 point at 2,074.52 while Sydney’s S&P-ASX 200 retreated 0.5 per cent to 6,677.60. India’s Sensex added 1.1 per cent to 39,009.11. The US-Chinese dispute over Beijing’s trade surplus and technology ambitions has fueled anxiety the global economy could tip into recession. Both sides have raised tariffs on billions of dollars of each other’s goods, hurting factories and farmers on both sides.
Adding to optimism, a Chinese Commerce Ministry spokesman on Thursday confirmed reports that importers had completed deals for purchases of American pork and soybeans. Negotiators are due to meet next month in Washington for a 13th round of talks. Economists say a temporary deal is possible but a final settlement is unlikely this year.
Trump signed a trade deal with Prime Minister Shinzo Abe of Japan on Wednesday that covers farm, industrial and digital trade but leaves tariffs on autos and parts at 2.5 per cent. That prompted Japanese automakers to appeal to their government for more support. The deal caps negotiations that began last year after Trump complained about Japan’s trade surplus with the United States and threatened higher tariffs and other measures.
The deal with Japan “suggests the president is open to an ‘interim’ trade deal, possibly signaling he is willing to negotiate one with China,” said Innes. Investors largely shrugged off news of impeachment proceedings against Trump, said Mizuho Bank in a report. The congressional probe might complicate White House efforts to resolve trade disputes with China and other nations.