Stocks rise along with optimism over US-China trade talks

Stocks rise along with optimism over US-China trade talks

Meanwhile, confirming the conclusion of the trade talks, China's foreign ministry spokesman Lu Kang told a media briefing that "the extension of the talks indicates that both sides are serious about this consultation".

Asian markets were mostly lower Thursday as US and Chinese officials wrapped up three days of talks in Beijing without significant breakthroughs.

World markets rose on increasing optimism that the two sides would be able to hammer out a deal ahead of a March deadline and avert further import tariff hikes.

Facing a March deadline, talks aimed at ending a trade war between China and the USA are underway, with the world's two biggest economies expressing optimism over the potential for progress but neither indicating its stance has changed. "Both sides agreed to keep in close contact", the statement said.

Increased purchases by China of U.S. soybeans, oil, liquefied natural gas and financial services are viewed as easier to achieve than major changes to China's industrial policies aimed at transferring USA technology to Chinese firms.

A statement from the US Trade Representative said the talks "focused on China's pledge to purchase a substantial amount of agricultural, energy, manufactured, and other products and services from the United States". "We are moving towards a more balanced and reciprocal trade agreement with China". USA president Donald Trump tweeted without elaborating, as talks wound down late on Tuesday evening in Beijing.

"We've been hearing reports that there's been a narrowing of a gap between the two sides, but a narrowing of a gap is not a bridging of a gap, and it's a pretty wide gap".

Trump imposed tariff increases of up to 25 percent on $250 billion of Chinese imports.

The Trump administration is pushing for a way to make sure China delivers on its commitments in any deal the two nations reach to defuse a trade war that has roiled financial markets and dimmed the outlook for global growth.

Latest US-China Trade Talks Focus on China’s Pledge to Buy More US Goods – USTR

China and the USA wrapped up three days of trade talks and are reportedly coordinating how to characterize the results publicly as officials from both nations expressed optimism that progress had been made. USA negotiators are also taking steps to ensure the Chinese government actually follows through on its promises.

But the enthusiasm was wearing thin by Thursday, when Hong Kong's Hang Seng index fell 0.5 percent in early trading while the Nikkei 225 in Tokyo dropped 1.4 percent.

Among their many requests, USA negotiators are asking the Chinese to increase purchases of American farm and energy commodities; allow greater access into China's markets; improve and enforce property theft protections; and an end of China's policy of forcing foreign companies to hand over technology secrets. "It's been a good one..."

People familiar with the U.S. Economists say the 90-day postponement of additional tariff increases that had been meant to take effect January 1 may be too short to settle the disputes bedeviling U.S.

ANALYST'S TAKE: "While there was agreement on less thorny issues such as agriculture and energy, USA demands for verification and enforceable targets on intellectual property rights, transfer of technologies and non-tariff barriers may not be that easily addressed", DBS Group Research strategists Eugene Leow and Neel Gopalakrishnan said in a commentary.

The extra day of talks came amid signs of progress on issues including purchases of US farm and energy commodities and increased access to China's markets. Chinese officials have suggested they could revise some of their industrial plans but have but won't abandon larger goals that they consider a path to prosperity and global influence.

As the trade talks wound down, China's top economic official, Premier Li Keqiang, met with CEO Elon Musk of electric vehicle brand Tesla Inc.

There was little market reaction to Trump's prime-time televised address where he made his case that a U.S. -Mexico border wall is urgently needed, despite opposition from Democrats. But if a deal doesn't happen, remember, "I am a Tariff Man", Trump said. That meeting would likely include a senior Chinese government official along with trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

Chinese officials complain about controls on "dual use" technology with possible military applications.

Trump to stop federal relief aid for California wildfires
State officials have also pointed out that more than half of the California's forests are owned and managed by federal agencies. President Donald Trump said he's ordered FEMA to cut off money to California over his criticism of forest management.

Related Articles