There is breakthrough in US-Mexico trade talk, which will likely pave the way for Canada. There is progress in US-EU trade talks too. But how about China? Trump is clear with his priority as he said yesterday that “it’s just not the right time to talk right now, to be honest with China.” He went further and added that “it’s too one-sided for too many years and too many decades, and so it’s not the right time to talk.” Though, he said “eventually I’m sure that we’ll be able to work out a deal with China.” US Trade Representative Robert Lighthizer said that “we have to change the way we work with China”, without giving any detail.
This could explain why all Asian stocks surge today but China SSE is left behind. Yuan was lifted since the PBoC reintroduced measures last Friday that acts counter-cyclical to market forces to keep Yuan from falling too quickly. But the Yuan is quickly losing some momentum already.