Asian stocks open mostly negative with focus on the new US-China trade round

Asian stocks opened the fourth session of the week on mixed performance yet mostly negative, with Japanese and Chinese stock indexes falling, as well as Hong Kong's Hang Seng Index and South Korea's Kospi, which fell more than 1% on Thursday. While Australian and New Zealand stocks both rose despite the bearish  trend, reflecting positive stability from their side.

We have followed the Chinese economy release its reading for April consumer and producer prices data, which showed an accelerated inflationary pressures, with the annual CPI rising to 2.5% from 2.3% in the previous year's reading, in line with expectations. While the PPI's annual reading also showed an accelerated growth to 0.9% from 0.4% in the previous reading, exceeding expectations of 0.6%.

On the other hand, investors are currently looking at developments in the trade negotiations between the world's two biggest economies, as Vice Premier of the People's Republic of China, Liu He, headed a Chinese delegation to Washington later today, to conduct trade talks today and Friday with United States Secretary of Treasury, Steven Mnuchin, and Trade Representative, Robert Lighthizer, who led the US trade delegation that visited Beijing last week.

On Wednesday, US President, Donald Trump, said at a rally in Florida "They broke the deal!" leading him to raise tariffs. The president noted that "They are traveling to us, Vice Premier of the People's Republic of China, Liu He travels to us tomorrow -Good man- but they broke the deal, they can not do that, so they will pay."

In the same context, US President, Trump, tweeted on his official account on Twitter that the Chinese negotiating delegation, led by Vice Premier of the People's Republic of China, Liu He, told the White House that they are coming to the United States to conclude the trade agreement between the two countries, explaining that he is waiting for the outcome of those negotiations, also adding that he is very happy with more than $100 billion a year received by the US government of additional tariffs.

US President, Trump, also noted that he would be satisfied with the continued tariffs on Chinese imports, saying that China would be wrong if it thought it would negotiate a trade deal with a US administration led by the Democratic Party in the future, adding that China's withdrawal reflected its willingness to defer negotiations on a future trade deal with the Democratic Party.

This comes after the US President, Donald Trump, threatened to restore tariffs on China's imported goods and commodities in nearly $200 billion worth and to raise tariffs by 10% to 25% next Friday.

He also noted that tariffs on China's imported goods and commodities in nearly $200 billion worth could be raised and to raise tariffs by 10% to 25% next Friday. as he also threatened to also impose another 25% in tariffs on imported Chinese goods estimated at $325 billion soon. He said that his country had lost much in trade with the countries, and that the losses were estimated at between $600 to $800 billion a year, and with China losses estimated at $500 billion, adding that more losses would not be accepted.

United States Trade Representative, Robert Lighthizer, and Secretary of Treasury, Steven Mnuchin, said on Tuesday that China had moved away from the commitments made during trade negotiations. The top US trade commissioner, Lighthizer, at the time noted that Washington would increase the tariffs on Chinese goods imported to America from 10% to 25% by next Friday.

On the other hand, the Chinese Ministry of Commerce said in its commentary on the US threats to increase tariffs on Chinese goods and goods exported to the United States that the necessary countermeasures would be taken in the case of more tariff being added, amid the indication that the escalation of the trade dispute would not be in favor of either country. The ministry expressed its regret over the decision of the US administration to raise tariffs from 10% to 25%.

Japanese stocks witnessed a fall during today's trading session, with the broader Topix index falling by 1.48% to lose (23.31 point) down to 1,549.02, while Nikkei 225 index also fell by 1.25% (269.50 points) down to 21,333.09.

As for the Chinese stock indices, CSI 300 fell 1.43% to lose 52.62 points and reach 3,614.84, the Shanghai Composite Index also fell 1.04% (29.99 points) to reach 2,863.77.

As for Hong Kong's Hang Sang, it fell 1.52% (441.08 points) to 22,562.12. While South Korea's Kospi Index fell 1.24% (26.80 points) to 2,141.21.

To New Zealand's NZX 50, which rose 0.14% (14.41 points) to 10,077.46. While Australia's S&P/ASX 200 index also rose 0.29% to gain 17.96 points and reached the level of 6,287.10.