The global markets wait in anticipation for developments from the trade talks between the U.S. and China.
China, the chief country around which the trade talks revolve, has closed mixed. The January trade data was much stronger than expected, but investors still wait for the outcome of the trade talks.
President Xi will be meeting the U.S. Treasury Secretary Steven Mnuchin along with Trade Representative Robert Lighthizer. The meeting to take place on Friday will be an important and decisive outcome.
The deal has to be struck by March 2, as it the scheduled deadline marked. If the deal is not confirmed by then, the tariffs on Chinese imports will have an additional burden of 25 percent from 10 percent. The Chinese economy which is heavily impaired with slow growth will further be burdened with this additional tariff.
However, there are reports saying that President Trump may extend the deadline so that a deal may be constructively made, between the two countries. This will also help to contribute some stability to the stock markets.
The Asian markets closed slightly in the red on Thursday. The Nikkei, ASX 200 and Shanghai were marginally in the red with a 0.02 percent to 0.07 percent decline. The Hang Seng Index was slightly lower with a 0.23 percent decline, while the Kospi was trading higher and closed in the green with a gain of 1.11 percent.
Japan’s GDP has grown at an annual rate of 1.4 percent for the period October to December of 2018.
In China, exports have increased by 9.1 percent, higher than last year, according to Customs Data. Imports have fallen by 1.5 percent from last year. Analysts had predicted a 10 percent fall.
The trade surplus in China for the month is $39.16 billion, better than the expected $33.5 billion. Though the numbers have surprised the market, investors are still cautious about the economy.