South Korea’sKospiKOSPI)also dropped around 1%, while China’sShanghai Composite(SHCOMP)lost 0.2%.
Trump on Tuesday suggested to reporters in London that a trade deal with Beijing might come much later than many expected, saying ” in some ways I think it’s better to wait for after the election, if you want to know the truth. “
Thatcontradicted remarks made last month, whenTrump said the United States and China are “*********)
Separately, US Commerce Secretary Wilbur Ross told CNBC that delaying a trade deal could take leverage from China. Ross added that it was important the president made clear that he wasn’t under any time pressure to get a deal done.
The secretary also said that US import tariffs would continue unless there was a deal.The next round of tariffsis set to take effect on December 15.
Given recentinvestor optimism about US-China trade talks, the latest headlines are “extremely bitter pills” for the market to swallow, according to Steven Innes, chief Asia market strategist for AxiTrader.
The Trump administration appears to be “applying maximum pressure” on China and hintingthat the deal could be worse post-election 2020 than the current one on the table, he said.
The re -escalation of US-China trade tensions have dented investor sentiment in Asia, according to ING economists in a note on Wednesday.
“President Trump has dashed hopes of a phase one trade deal by mid-December and also hinted at ‘no deal’ until after 2020 elections, implying a prolonged uncertainty well into the next year, “they said.
Trump’s comments alsoshook Wall Street investors on Tuesday, with all three major indexes closing sharply lower.
CNN’s Anneken Tappe and Greg Clary contributed to the report.