US-China trade talks: Asian markets bounce back on positive news
CNNHong Kong CNN Business — Asian markets regained some lost ground on Tuesday, but investors are still wary about the US-China trade war. Asked later about Trump’s remarks, Chinese Foreign Ministry spokesman Geng Shuang said he hadn’t “heard about the weekend phone calls that the US mentioned.” He added that China hopes that the United States will “not let emotions sway their feelings” in relation to trade talks. Pan noted the “lack of confirmation from China” in her research note, adding that “few may be expecting a straight road towards a deal of late regardless of the type of conciliatory remarks.” China’s central bank also set its daily reference rate for the yuan at 7.081 for one US dollar — yet another 11-year low. They expect that the currency will gradually weaken, but it could drop more sharply “when tariff increases are confirmed or escalated.” Other analysts have said that China shows no signs of engaging in a full-blown currency war, but have added that the escalating trade war likely has given Beijing less incentive to prop up its currency in the face of mounting pressure on the economy.