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Asian stocks drop and investors are jittery as focus shifts to the 'unlikely' resolution to US-China trade war

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Fears of US-China trade talks collapsing sent Asian equities sliding on Wednesday, as traders followed Wall Street's example and sold riskier assets.

US President Donald Trump intends to raise tariffs from 10% to 25% on $200 billion worth of Chinese goods on Friday.

China's top trade negotiator will visit Washington on Thursday and Friday in a last-minute attempt to strike a deal and prevent the tariff hikes. "Investors are not holding their breath for any serious progress in these talks," said Jasper Lawler at London Capital Group. Asian equities slumped on Wednesday as regional traders, fearing a collapse of US-China trade negotiations,"Given the continued signs of risk aversion in the markets, investors are not holding their breath for any serious progress in these talks," said Jasper Lawler, head of research at London Capital Group, in a morning note."The chances of the two powers resolving their issues over the coming two days of talks appears unlikely.

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