Asian markets settle after rallying on U.S.-China trade hopes

Annabelle Liang, The Associated Press</span>
Published Thursday, January 10, 2019 1:02AM EST

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

KEEPING SCORE: Japan's Nikkei 225 index, which closed up 1.1 per cent on Wednesday, retreated 1.4 per cent to 20,141.93. The Kospi in South Korea dropped 0.1 per cent to 2,062.49. Hong Kong's Hang Seng shed 0.3 per cent to 26,394.06, while the Shanghai Composite index was flat at 2,545.05. Australia's S&P ASX 200 lost 0.3 per cent to 5,759.80. Shares fell in Taiwan but rose in Singapore, Indonesia and the Philippines.

WALL STREET: Stocks rose for the fourth consecutive session after American and Chinese negotiators extended their talks to a third day. Traders took this as a positive sign, but a partial government shutdown at home that appeared far from being resolved limited gains. The S&P 500 index added 0.4 per cent to 2,584.96. The Dow Jones Industrial Average climbed 0.4 per cent to 23,879.12 and the Nasdaq composite was 0.9 per cent higher at 6,957.08. The Russell 2000 index of smaller company stocks rose 0.9 per cent to 1,438.81.

U.S.-CHINA TALKS: Official statements released after the talks, which lasted a day longer than planned, did not indicate if progress was made on a tariffs battle that has shaken global financial markets. China's Ministry of Commerce said there were "detailed exchanges" and both sides would "maintain close contact," without offering specifics. A statement from the Office of the U.S. Trade Representative said negotiators will "report back to receive guidance on the next steps." The talks come after President Donald Trump and Chinese leader Xi Jinping met and agreed to hold off on more tariffs for 90 days, on the sidelines of the G-20 summit in Argentina last month. Investors are hopeful that more and higher-level negotiations will follow.

ANALYST'S TAKE: "While there was agreement on less thorny issues such as agriculture and energy, U.S. 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.

ENERGY: Oil prices settled after hitting their highest levels in almost a month. U.S. crude, which has jumped 15 per cent in 2019, dropped 52 cents to $51.84 per barrel in electronic trading on the New York Mercantile Exchange. It surged 5.2 per cent to $52.36 per barrel on Wednesday. Brent crude, used to price international oils, gave up 54 cents to $60.90 per barrel. It climbed 4.6 per cent to $61.44 a barrel in London.

CURRENCIES: The dollar strengthened to 107.90 yen from 108.15 yen late Wednesday. The euro rose to $1.1565 from $1.1543.

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