Yahoo Finance Asian Markets Mixed After Fed; China, U.S. May Announce Trade Deal Next Week
Investing.com - Asian markets were mixed in morning trade on Thursday following the U.S. Federal Reserve’s overnight monetary policy decision.
Hong Kong’s Hang Seng Index edged up 0.4% by 10:30 PM ET (02:30 GMT). South Korea’s KOSPI rose 0.2%.
Down under, Australia’s ASX 200 was down 0.6%.
Markets in China and Japan are closed for holidays.
On Wednesday, Federal Reserve Chairman Jerome Powell played down recent weakness in U.S. inflation, which retreated further from the Fed’s 2% target, as possibly “transitory.”
Powell told reporters that the policy stance is “appropriate right now” and “we don’t see a strong case for moving in either direction.”
Investors will next turn to Friday’s monthly U.S. jobs report for more clues on the country’s economic outlook.
Meanwhile, citing unnamed sources, CNBC reported that The U.S. and China may announce a trade deal by next Friday.
Officials from both sides wrapped up the latest round of negotiations in Beijing on Wednesday. Chinese Vice Premier Liu He will travel to Washington for more talks next week.
In a final agreement, the U.S. might decide to remove a 10% duty on part of the $200 billion in Chinese goods on which it levied tariffs, CNBC said citing a Politico report.
Washington would keep a 25% tariff on the other $50 billion in goods until after the November 2020 election, it added.
In a statement, White House press secretary Sarah Huckabee Sanders said “discussions remain focused toward making substantial progress on important structural issues and rebalancing the US-China trade relationship.”
In other news, the China Banking and Insurance Regulator announced plans on Wednesday to allow overseas insurance groups to set up units in the China.
It also plans to remove limits on ownership in local banks.
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