- Asian stocks are lacking clear direction as investors digest mixed headlines on trade.
- Trump is reportedly planning to delay the decision on auto tariffs by six months.
- Trump administration on Wednesday moved to block China’s Huawei.
Asian stocks are trading mixed this Thursday morning with S&P 500 futures reporting losses as Sino-American tensions continue to flare.
As of writing, Japan’s Nikkei is trading 0.56% lower on the day and South Korea’s Kospi is down 0.38%. Meanwhile, stocks in China, Australia and New Zealand and flashing moderate gains with Shanghai Composite reporting 0.18% gains.
The US President Trump on Wednesday banned China’s Huawei Technology Co Ltd from accessing the US market and American suppliers.
The news also hit the wires in the US session yesterday that Trump is planing to delay the decision on auto tariffs by up to six months.
The losses in the S&P 500, however, indicate the investors are worried that Trump’s move on Huawei may further complicate matters between the US and China.
In FX markets, JPY is better bid, possibly tracking the drop in the S&P 500 futures. The Aussie dollar is on the defensive, having hit 4.5-month lows below 0.69 earlier today on the back of a dismal Australian labor market data. The Aussie 10-year government bond yield fell to a record low of 1.64%.