No talks between Trump and China's Xi before trade deadline

Trump and Xi shake hands after making joint statements in Beijing in November 2017

No talks between Trump and China's Xi before trade deadline

Analysts had hoped that Trump would jump over to China on his upcoming trip to Asia, when he is scheduled to meet North Korean leader Kim Jong Un, but Trump's most recent comments dispelled this belief. The Kospi in South Korea declined 1.2 percent to 2,177.04 and Australia's S&P ASX 200 was down 0.4 percent at 6,067.60.

Japan's Nikkei 225 index was 1.6 percent lower at 20,413.91.

Trump economic adviser Larry Kudlow said earlier at the White House that a Trump-Xi summit was "off in the distance" but that he remained confident the two leaders would still meet at some point.

Trump, who is proud of having a warm relationship with Xi, said last week he would meet with him again to hammer out a final deal, after Chinese Vice Premier Liu He presented Xi's invitation at the White House.

Time is running out for the U.S. and China to reach an agreement before the deadline the Trump administration has set to more than double tariffs on US$200 billion (S$271 billion) of Chinese goods.

"The worries surround the uncertainties of a resolution to the likelihood of further tariffs in this on-again, off-again confidence with regards to a deal", Jingyi Pan of IG said in a market commentary.

Stocks fell in the Philippines, Indonesia and Singapore but rose in Malaysia.

Last week investors were optimistic, with hopes the two countries would progress toward a deal before tariffs on Chinese imports would rise to 25% after the deadline. Markets in China and Taiwan were closed. Treasury Secretary Steve Mnuchin and the US Trade Representative Robert Lighthizer are expected in China next week to deploy the third round of negotiations between the two countries that have lasted since late previous year.

However, Trump's recent comment had substantially aired negativity and dampened the hope of reform of quick trade pack, meanwhile impacting the global stocks dreadfully and fueling a steep slip in global stock markets including the U.S. & emerging market shares. Britain's FTSE 100 index added 0.2 percent to 7,108.82 as Prime Minister Theresa May and the European Union agreed to more negotiations over an exit deal.

The news prompted a sharp selloff in US stocks, dashing the optimism that had been building that the countries were progressing toward a deal before tariffs on Chinese imports rise to 25 percent after the March 1 deadline.

CURRENCIES: The euro was flat at $1.1337 while the dollar was steady at 109.79 yen.

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