The much anticipated US-China trade talks concluded on Wednesday with some optimism, and negotiations should continue to cheer the market in the near term.
Though there was no mention of new consensus, both parties resolved to work towards some resolution, UOB economist Ho Woei Chen said in her research note.
After the meeting, the US trade representative office said in a statement that it is committed to resolve structural issues and improve trade relations with China.
It said the focus of the meeting was to achieve the needed structural changes in China.
This is with respect to forced technology transfer, intellectual property protection, non-tariff barriers, cyber intrusions and cyber theft of trade secrets for commercial purposes, services, and agriculture.
The talks also focused on China’s pledge to purchase a substantial amount of agricultural, energy, manufactured goods, and other products and services from the US.
Separately, China’s Commerce Ministry said in a statement that the meeting has improved mutual understanding and laid a foundation for resolving issues of mutual concern.
The meeting extension and a surprise attendance by China Vice Premier Liu as well as the large size of Chinese delegation at the meeting were taken positively by markets as efforts to make negotiations work.
‘The meeting outcome suggests there will not be any escalated deterioration in US-China trade ties in the near-term,’ UOB’s Ho said.
But, the way forward remains fraught with difficulties given the focus on structural changes that are expected from China,’ he added.
Tai Hui, chief market strategist for Asia Pacific at JP Morgan Asset Management said the latest positive signals from the Trump administration of prospects to reach some form of agreement should continue to cheer the market in the near term.
‘While we don’t expect a full resolution in trade tension between China and the US in the foreseeable future, small steps in progress are likely to be taken favourably by investors,’ he said.