Asian Stocks Mixed Ahead of U.S.-China Talk; Xiaomi Files Mega IPO
Published May 03, 2018 01:21AM ET
Asian equities were mixed in afternoon trade
Investing.com – Asian equities were mixed in afternoon trade on Thursday ahead of the much-awaited U.S.-China trade talk, while the U.S. Federal Reserve officials left interest rates unchanged as expected.
Electronic and software company Xiaomi made headlines as it filed for IPO in Hong Kong and has become the first major company to use the city’s new rules for going public.
Reports who cited people familiar with the matter expected the offering to be at least $10 billion, which would in turn value the company to be at least $100 billion and would make it the largest listing by a Chinese technology firm in almost four years.
In Asia, the Shanghai Composite and the SZSE Component were 0.1% and 0.2% lower by 1:20AM ET (05:20 GMT).
A senior government official reportedly said “China would not succumb to threat from the U.S.” ahead of the U.S.-China talks that kick off on Thursday. Any significant breakthrough seemed unlikely at this stage as U.S. President Donald Trump already said earlier this week that the trip could be cut short if it’s not satisfactory.
The Chinese official said the government would not accept any U.S. preconditions for negotiations such as giving up its long-term advanced manufacturing ambitions or narrowing the trade gap.
Hong Kong’s Hang Seng Index underperformed its regional peers and traded 1.5% lower, although there were no clear directional drivers.
Elsewhere, South Korea's KOSPI was down 0.5% while Australia's S&P/ASX 200 climbed 0.8%. Japan’s Nikkei 225 is closed for a holiday.
Overnight, the S&P 500 slid 0.7%, while the Dow closed 0.7% lower and the NASDAQ Composite lost 0.4%.
The Fed acknowledged inflation is close to its target and has not hinted any intention to change their gradual tightening of monetary policy.
“Inflation on a 12-month basis is expected to run near the committee’s symmetric 2 percent objective over the medium term,” the policy-setting Federal Open Market Committee said in a statement Wednesday. “The committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate.”
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Written By: Investing.com
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