Asia-Pacific markets poised for mixed open as traders await details of U.S-China talks

CNBC

6 days ago

Asia-Pacific markets are set to start the day mixed Monday, with investors awaiting more details of the trade talks between the U.S. and China, which kick off in Stockholm later in the day.
The talks will be led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng. Bessent said on Fox Business that he expects a trade-truce extension during the negotiations, which he said will include a broader range of topics, including Beijing's oil purchases from Russia and Iran.
The U.S.-China talks follow U.S. President Donald Trump's announcement that the U.S. has reached an agreement with the European Union on Sunday stateside.
The president had previously threatened 30% tariffs on most imported goods from the U.S.'s largest trading partner.
Good morning from Singapore.
Investors will be keeping a close watch on Chinese markets following reports that the country will resume trade talks with the U.S. in Stockholm on Monday to discuss longstanding economic disputes.
The talks will be led by U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng.
Futures for Hong Kong's Hang Seng Index stood at 25,396, pointing to a stronger open compared with the HSI's last close of 25,388.35.
Japan's benchmark Nikkei 225 was set to open higher, with the futures contract in Chicago at 41,645 while its counterpart in Osaka last traded at 41,410, against the index's Friday close of 41,456.23.
Australia's S&P/ASX 200 was set to start the day lower with futures tied to the benchmark at 8,626, compared with its last close of 8,666.90.
— Amala Balakrishner
Investors shouldn't fret over potential volatility in the market over the coming weeks, according to Ulrike Hoffmann-Burchardi, chief investment officer for the Americas and global head of equities at UBS Global Wealth Management.
"Threats to Fed independence could linger as a risk to markets over the coming weeks, in our view. We also see potential risks from any resurgence of trade tensions ahead of the White House's 1 August deadline, along with any signs of economic harm from tariffs. With global stocks at all-time highs, some combination of these has the potential to contribute to market volatility in the weeks ahead," she wrote.
"Nevertheless, we would expect market swings to be temporary," Hoffmann-Burchardi continued.
— Sean Conlon
All three major averages finished in positive territory on Friday and posted gains for the weekly period.
The S&P 500 ended the session 0.40% higher, closing at 6,388.64, while the Nasdaq Composite finished the day up 0.24% to reach 21,108.32. The Dow Jones Industrial Average also rose 208.01 points, or 0.47%, to settle at 44,901.92.
— Sean Conlon