Chinese officials are growing hesitant to pursue a broad trade deal with the U.S. sought by President Donald Trump in negotiations set to begin this Thursday, people familiar with the matter told Bloomberg News.
As the USA dollar has lost momentum, the euro stood at US$1.0982, up 0.02 per cent in Asia, recovering little by little after having hit a near 2 1/2-year low of US$1.0879 last Tuesday.
On Monday morning, Kudlow answered "no" when asked if the president's call for China to investigate Joe Biden ever came up during trade discussions between the two countries.
About 30 Chinese officials, led by Vice Finance Minister Liao Min, entered the U.S. Trade Representative's office for two days of negotiations, to be followed by the first minister-level trade talks in more than two months.
Lower-level talks have been underway since last month. These include forced technology transfer, intellectual property rights, services, non-tariff barriers, agriculture and enforcement, according to the White House. He then touted the strength of the US economy even as the tariff battle continues with China.
A report that Beijing was increasingly reluctant to agree to a broad trade deal pursued by President Donald Trump weighed on sentiment early.
"It is possible that some additional progress will be made with China toward the end of the week", he said.
Sentiment toward the US economy deteriorated sharply last week after disappointing data on manufacturing and services suggested the trade war was taking a toll, and more rate cuts would be needed to avert a potential recession in the world's biggest economy.
But White House economic adviser Larry Kudlow helped ease some anxiety, saying it was possible USA and Chinese trade negotiators could make progress when they meet in Washington, and said the United States was open to looking at what proposals Beijing brought.
"The delisting is not on the table".
"We've had good moments with China", Trump told reporters Friday.
"What we're looking at, actually, is investor protection, USA investor protections... transparency and compliance with a number of laws", he told reporters at the White House, citing complaints from exchanges.
Trump has repeatedly said he would accept only an all-encompassing deal with China. Hong Kong was also shuttered for a holiday, leaving traders with limited options to respond - or not - to escalating violence in the city, where protesters set fires and vandalized train stations and banks over the weekend.
Stocks veered modestly higher on Wall Street Monday afternoon following a choppy day of trading that had the market on track to recoup some of its losses from last week.