By Hideyuki Sano and Swati Pandey
TOKYO/SYDNEY (Reuters) – Asian stocks retreated from six-month highs on Friday on uncertainty over whether and when the United States and China will seal a deal marking a truce in their trade war that has slowed economic growth and roiled markets.
Global markets rallied overnight on news the two countries have agreed to roll back tariffs on each others’ goods as part of the first phase of a trade deal.
But markets ran into profit taking during Asian hours on worries the pact could still fall apart as an outside adviser to Trump said there was no specific agreement for a phased rollback of the tariffs.
Multiple sources familiar with the talks said the plan faced fierce internal opposition at the White House and from outside advisers.
MSCI’s gauge of Asia-Pacific shares outside Japan () was off 0.2% at 536.43 after rising to 538.77, a level not seen since early May. For the week, it is so far up more than 2%.
Tokyo’s Nikkei (), which earlier in the day climbed to a 13-month high, gave up some of the gains to be last up 0.05%. Chinese shares were firm with the blue-chip index () up 0.4%.
“The noise coming from Washington DC was not quite so upbeat, with reports of conflicts amongst White House advisors on the merits of the plan,” said Jeffery Halley, senior market analyst at OANDA.
“That said, despite the lack of detail and a concrete timeline for even signing an interim trade deal, progress does at least appear to be being made. As ever, the caveat here is the unpredictable nature of the White House.”
E-mini futures for the () were down 0.2% while minis () ticked 0.1% lower.
Overnight on Thursday, U.S. stocks pared gains on the report of the opposition to the deal in Washington but the Dow and S&P 500 did end at all-time closing highs. The Nasdaq missed a record close by less than two-tenths of a point.
As investors wound back their buying in safe assets, the 10-year U.S. Treasuries yields jumped to 1.9730% () on Thursdsay to a three-month peak, and last stood at 1.9138%.
In the currency market, safe-haven currencies lost some of their edge, though moves were small.
The dollar climbed to 109.22 yen
The traded at 6.9768 yuan per dollar
That helped to push up the () to three-week highs of 98.236. The index last stood at 98.112.
Gold was a tad firmer at $1,468.7844 per ounce
Oil prices slipped with U.S. West Texas Intermediate (WTI) crude () losing 22 cents to $56.93 per barrel. was down 11 cents at $62.18.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.