Stocks in Asia traded lower Wednesday morning after U.S. President Donald Trump said overnight that he may delay a trade deal with China till after the 2020 U.S. presidential election.
The Australian economy grew 1.7% on a seasonally adjusted basis year-on-year in the September quarter, data from the Australian Bureau of Statistics showed on Tuesday.
“The economy has continued to grow, however the rate of growth remains well below the long run average,” Bruce Hockman, chief economist for the ABS, said in a statement.
Mainland Chinese stocks declined in early trade, with the Shanghai composite down about 0.3% and the Shenzhen component shedding 0.15%. The Shenzhen composite also fell 0.214%. Hong Kong’s Hang Seng index traded 0.76% lower.
Overall, the MSCI Asia ex-Japan index traded 0.64% lower.
Investors have been anticipating a “phase one” trade deal between Washington and Beijing to be inked, ahead of a closely watched date of Dec. 15, when additional tariffs on Chinese exports to the U.S. are set to kick in.
But Trump told reporters on Tuesday: “In some ways, I like the idea of waiting until after the election for the China deal, but they want to make a deal now and we will see whether or not the deal is going to be right.” When asked if he had a deadline for the deal, he added: “I have no deadline, no.”
“Hopefully it’s just negotiating tactics and posturing in the run up to the December 15th deadline and we’ll see some sort of resolution well ahead of … the 12 month timeline,” James Thom, investment director of Asian equities at Aberdeen Standard Investments, told CNBC’s “Squawk Box” on Wednesday.
Even if tariffs do increase come Dec. 15, Thom said: “Who knows how long that will last, there’s always the scope to roll that back.”
Fox News reported that the White House still plans on moving ahead with scheduled Dec. 15 tariffs on Chinese goods notwithstanding recent efforts at a “phase one” trade truce.
Overnight stateside, stocks tumbled amid the trade uncertainty. The Dow Jones Industrial Average fell 280.23 points to close at 27,502.81 while the S&P 500 slipped 0.7% to end its trading day at 3,093.20. The Nasdaq Composite closed about 0.6% at 8,520.64.
Currencies and oil
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.737 after falling from levels above 97.9 seen earlier.
The Japanese yen traded at 108.62 against the dollar after strengthening from lows around 109.2 yesterday. The Australian dollar changed hands at $0.6851 after rising from levels below $0.684 in the previous session.
Oil prices were up in the morning of Asian trading hours, with international benchmark Brent crude futures adding 0.53% to $61.14 per barrel. U.S. crude futures also gained 0.52% to $56.39 per barrel.
— CNBC’s Thomas Franck contributed to this report.