Asian markets fell early on the day of trading as the glory of the first US-China trade agreement waned and the reality of a long road emerged.
US and Chinese officials are expected to sign the deal in Washington on Wednesday. Details, such as China's potential economic reforms and U.S. tariff cuts, have not yet been released, but will likely be released later.
Despite the progress, experts say that solving key issues will require years of negotiation.
"The signing of the Phase 1 contract would be a welcome, albeit modest, de-escalation of the trade hostilities between China and the United States," Eswar Prasad told the Associated Press. "But the content of the fundamental causes of trade and economic tensions between the two sides, which will continue to consolidate, is hardly addressed."
Stephen Innes, chief strategist for Asia at AxiTrader, agreed in a note. "Some air came out of the trade deal party balloon as the market around the Phase II component became unknown," he wrote.
One of these problems is Huawei Technologies Co., the Chinese telecommunications equipment giant. The Wall Street Journal reported Tuesday that the U.S. is trying to tighten Huawei regulations, and some MPs are reportedly calling for a $ 1 billion plan to help US companies do better against Huawei and other Chinese companies, developing 5G technology to exist.
fell 0.4% and Hong Kong's Hang Seng Index
slipped 0.8%. The Shanghai network
fell 0.7% during the Shenzhen Composite
0.6% immersed. South Korea's Kospi
declined 0.4% as the benchmark indices fell in Taiwan
declined. Australia's S & P / ASX 200
XJO, + 0.47%
against the trend and rose by 0.4%.
SoftBank is among the individual titles
fell in Tokyo trade, as did Mazda
, In Hong Kong food processor WH Group
coincided with Sunny Optical
and oil company CNOOC
in South Korea dropped while Beach Energy
BPT, + 2.57%
jumped in Australia.