Stocks tread water ahead of signing of initial US-China trade deal

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Stocks were steady in early Asian trade on Wednesday as investors awaited the signing of an initial U.S.-China trade deal, with sentiment somewhat ...

TOKYO: Stocks were steady in early Asian trade on Wednesday as investors awaited the signing of an initial U.S.-China trade deal, with sentiment somewhat dented by comments from the U.S. Treasury Secretary's that tariffs would remain in place for now.

The news came hours before the signing of a preliminary trade agreement to ease an 18-month-old trade war between the world's two largest economies. "We should not expect further tariff relief until after the November Presidential elections, suggesting that today's agreement is probably as good as it gets for 2020," said Tapas Strickland, director of economics at National Australia Bank.U.S. Treasury yields ticked down as investors took stock of weaker-than-expected consumer prices and the expected signing of the interim trade deal, with benchmark 10-year note yield falling to 1.807per cent .

In the currency market, the Japanese yen reversed earlier losses against the dollar as news U.S. tariffs would remain on Chinese goods through the U.S. election hurt risk sentiment.

 

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