Tokyo's main index closes a little lower in a mixed day for Asian stocks and risk
It is very much a mixed session here in Asia as equity investors continue to make up their mind amid uncertainty over US-China trade talks. A report by the Financial Times overnight mentioned that the US has rejected an offer by two Chinese vice ministers for preparatory trade talks, suggesting that an agreement by March is still a long shot at this point.
Although Kudlow has since denied the report, it's still leaving a bitter taste in the mouth of equity investors to start the day. Chinese stocks are also tepid as they bounce between negative and positive territory for most of the day, nearing the lows currently.
Despite the indecisive tones here, currencies are more assured with risk/commodity currencies leading - owing some gains there to yuan strength - while the yen is lagging behind after the BOJ moved to cut its inflation forecasts while latest Japanese trade balance data also showed a slump in exports earlier today.
