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U.S.-China tariffs, oil and currencies

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SINGAPORE — Markets in Asia-Pacific were subdued in early trade on Tuesday, as investors weighed a possible thawing of U.S.-China trade relations as U.S. President Joe BidenThe possibility of tariff reductions for Chinese goods was discussed.

Japan has the following: Nikkei 225The Topix fell 0.4% during early trading while it was up 0.2%. South Korea’s Kospi declined 0.39%.

In Australia, the S&P/ASX 200 sat just slightly below the flatline. MSCI’s Asia-Pacific broadest index outside Japan was lower at 0.11%.

Japan will report May manufacturing activity data in economic data.

The news was taken by markets as indicating a possible thaw in US-China trade tensions. However, it’s not the first time that tariff reductions were proposed.

Taylor Nugent

National Australia Bank economist

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Consumer prices rose as a result. White House had said last monthIt was researching how these tariffs contributed to inflation.

These tariffs were enacted in 2018, when Trump’s administration placed tariffs on Chinese goods worth billions of US dollars. Beijing responded with punitive measures similar to those imposed by Trump, thereby igniting a trade war.

Taylor Nugent of the National Australia Bank, wrote that markets took the news to mean that there was a possible thaw in US-China trade tensions. However, it’s not the first time that tariff reductions were floated.A reduction in tariffs could help to lower US inflation, but reports indicate that administration officials worry about China’s influence ahead of the November congressional elections.

You can also read other news about trade the U.S. announced on Monday the Indo-Pacific Economic Framework with Asian partners including Australia, Japan and South Korea. This group wants international regulations to govern the digital economy, supply chain, decarbonization, and workers.

Oil and currencies

The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 102.191 — rising from levels just above 102 earlier.

The Japanese yenIt traded at 127.74 dollars, a slight increase from its previous levels of 127.8. The Australian dollarThe price was $0.708, up from $0.704 earlier.

The morning Asia trading hour saw oil prices lower, with an international benchmark Brent crude futures down 0.51% to $112.84 per barrel. U.S. crude futures slipped 0.5% to $109.73 per barrel.

— CNBC’s Ted Kemp contributed to this report.

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