TOKYO: Asian equities tracked Wall Street's slide on Wednesday, while investors switched to safe-haven government bonds, driven by fears that global growth will suffer as a potential trade deal between the United States and China appeared to be unraveling.
"From an equity market perspective, the immediate focus is on the two-day talks scheduled to take place between the U.S. and Chinese officials," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management. The Japanese yen, a perceived safe-haven, often gains against its peers in times of market turmoil and political strife.
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