Asian markets once again fell into the red on Thursday as investors anxiously await the start of high-stakes trade talks between China and the United States. After several rounds of negotiations, the two-day meeting in Washington, which kicks off later in the day, has taken on huge significance after Donald Trump threatened to ramp up tariffs on Chinese goods from Friday blaming backsliding by Beijing.
Asian shares stepped back on Tuesday after China cut its economic growth target and pledged measures to support the economy amid growing challenges from rising debt and a dispute over trade and technology with the United States. Australian shares dropped 0.6% while South Korea's Kospi lost 0.5%. MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2% and Japan's Nikkei dropped 0.3%.
United States shares staged a late recovery on Monday to post only their second positive close of the month. Earlier, European and Asian markets fell on fears that Greece may default. In Latin America results were much in line with the US.
Fears that the US economy is stalling and may be heading back into recession caused a severe slump in stock markets around the world on Friday. With European indexes already shaken by concerns with Greece and the Euro, worse-than-expected US jobs data drove investors to unload stocks.
US stocks shot 3% higher on Tuesday on speculation Federal Reserve Chairman Ben Bernanke this week could signal new help for the US economy, giving investors hope a four-week rout was nearing an end.
Asian equity markets were sharply down early Tuesday as investors fearing a possible global economic slowdown continued to flee stocks as had happened earlier in Europe, United States and Latin America.