Asia Pacific trade mixed amid US-China trade developments

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Stocks in Asia Pacific traded mixed on Wednesday following developments on the U.S.-China trade front.

The Nikkei 225 in Japan traded 0.41% higher in early trade, while the Topix index added 0.34%.

Over in South Korea, the Kospi slipped 0.21%.

Shares of Apple supplier LG Display dropped more than 2% after the firm reported a larger-than-expected second-quarter operating loss. The company also said it is looking to diversify its supplier base amid the ongoing diplomatic spat between Tokyo and Seoul that has seen Japan place export curbs on important materials to South Korea.

Wednesday is the deadline for public comment on the Japanese government’s plan to remove South Korea from a list of “white list” countries with minimum trade restrictions, the Nikkei Asian Review reported Tuesday.

Meanwhile, the S&P/ASX 200 in Australia rose 0.47% as most sectors saw gains.

In corporate news, Japan’s Mitsubishi Motor is set to release its earnings for the first quarter later on Wednesday.

Asia-Pacific Market Indexes Chart

Overnight on Wall Street, the Dow Jones Industrial Average closed 177.29 points higher at 27,349.19, while the S&P 500 also gained 0.7% to finish its trading day at 3,005.47. The Nasdaq Composite added 0.6% to close at 8,251.40.

On the trade front, in-person trade negotiations between the U.S. and China will begin next week, sources told CNBC. They said White House officials are looking at a longer-term timeline.

Meanwhile, Boris Johnson is set to be the U.K.’s next prime minister after winning the ruling Conservative Party’s leadership race on Tuesday. Johnson has previously stated that the U.K. must leave the European Union by the October 31 deadline “do or die, come what may.”

The British pound last stood at $1.2435, after seeing a high of $1.248 yesterday.

“In our view, Johnson’s desire to push for Brexit, deal or no deal, increases the chance of an early general election and some possibly nasty GBP outcomes,” Rodrigo Catril, senior foreign exchange strategist at National Australia Bank, wrote in a note.

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.710 rising from levels below 97.5 yesterday.

The Japanese yen, widely viewed as a safe-haven currency, traded at 108.22 after weakening from levels below 108.0 yesterday. The Australian dollar was at $0.6994 after declining from levels above $0.702 in the previous session.

Here’s a look at some of the data set to be released in the day ahead:

  • Hong Kong: NagaCorp earnings
  • Japan: Leading index at 1:00 p.m. HK/SIN, Line earnings for the second quarter, Mitsubishi Motor earnings for the first quarter

— CNBC’s Fred Imbert contributed to this report.

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