BEIJING (AP) – Asian stocks tumbled on Wednesday after Wall Street fell into disarray, as Washington and Beijing agreed in a ceasefire. The Shanghai Composite Index lost 0.7 percent to 2,647.55. The Nikkei 225 in Tokyo lost 0.4 percent to 21,946.94, while Sydney's S & P ASX 200 fell 1.2 percent to 5,641.50. Kospi Seoul lost 0.6 percent to 2,102.17 and benchmarks in Taiwan, New Zealand and Southeast Asia also declined.
WALL STREET: Investor confidence in the US-China Agreement fluctuated after confusing and contradictory comments by President Donald Trump and some high-ranking officials. The fear that the difference of opinion between the two centers of economic power could slow down the world economy has been revived. The Standard & Poor's 500 fell 3.2 percent to 2,700.06. The Dow Jones Industrial Average lost 3.1
TRADE TORMOIL: The Trump government expressed doubts about the substance of a ceasefire between the US and China. The resurgence of fears and their collective bargaining could cool global economic growth. Trump had previously said that the agreement in Buenos Aires would result in sales of American agricultural goods and lowering Chinese car fares, but Beijing has not yet confirmed that. Trump reiterated anti-tariff threats on Tuesday and said on Twitter that Washington would "make a real deal" with China or otherwise charge "heavy duty" Chinese goods. Therefore, the weekend agreement seemed even less likely to bring about a lengthy solution.
FED WATCH: The markets were torn by the statements of the President of the Fed's New York Regional Bank. Speaking to reporters, John Williams said that given his prospects for strong economic growth, he expects "another gradual increase in interest rates will best promote sustained economic expansion." This seemed to contradict Fed Chairman Jay Powell's remarks last week. The jitter pushed the demand for government bonds forward. The yield on the 10-year Treasury note dropped from 2.99 percent at the end of Monday to 2.91 percent. This is a big step. The decline in bond yields, which has an impact on interest rates on mortgages and other consumer credit, weighed on bank stocks.
ANALYST'S TAKE: "Positive sentiment from China-USA. The ceasefire of the commercial war broke up quickly, "said Eugene Leow and Radhika Rao DBS Group. "Trade questions, worries about US growth, and the perceived reluctance of the Fed all play a role in explaining these market movements. Concerns were also compounded by the growing news coverage of reverse bends and recession risks. "
ENERGY: US crude oil prices fell 53 cents to 52.72 US dollars per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 30 cents on Tuesday to $ 53.25. Brent crude oil, used at the price of international oil, lost 63 cents a barrel in London of $ 61.45. In the previous session, the price rose 39 cents to $ 62.08.
CURRENCY: The dollar rose from 112.78 yen on Wednesday to 112.95 yen. The euro fell from $ 1,1343 to $ 1.1330.