Singapore, June 27 (AP/UNB) — Asian stocks advanced Thursday ahead of a meeting between President Donald Trump and Chinese leader Xi Jinping at the G-20 summit in Japan this week.
Tokyo's benchmark Nikkei 225 rose 0.8% to 21,262.10 and the Kospi in South Korea climbed 0.9% to 2,139.91. Hong Kong's Hang Seng was up 0.9% at 28,466.09. The Shanghai Composite jumped 0.7% to 2,995.82 and Australia's S&P/ASX 200 added 0.1% to 6,644.90. Shares rose in Taiwan and throughout Southeast Asia.
The meeting is undoubtedly the economic highlight of the summit, held in Osaka, Japan, on Friday and Saturday. Investors hope that the presidents will move toward resolving a trade dispute that has raised business costs and weighed on global financial markets.
Trump has said he was prepared to place tariffs on $300 billion more in Chinese imports, covering everything China ships to the United States, if the talks with Xi don't end in progress.
"The Chinese economy's going down the tubes," he said in an interview with Fox Business Network on Wednesday. "They want to make a deal more than I do."
On Wednesday, U.S. Treasury Secretary Steven Mnuchin told CNBC that the two nations "were about 90% of the way there" with a trade deal. American and Chinese negotiators have completed 11 rounds of trade talks with no agreement.
Stephen Innes of Vanguard Markets believes the upcoming talks will be a "formality at best."
"Although Mnuchin suggested we are 90% there to a trade deal, that reaming 10% has always been the gap too far to bridge — especially that trust gap where the U.S. wants to keep existing tariffs in place to ensure China compliance," he added.
Wall Street made early gains Wednesday on optimism over the talks. But the rally fizzled and most major benchmarks were lower at the closing bell.
The S&P 500 index eased 0.1% to 2,913.78 and the Dow Jones Industrial Average shed less than 0.1% to 26,536.82. The Nasdaq composite added 0.3% to 7,909.97 while the Russell 2000 index of smaller company stocks slipped 0.2% to 1,517.78.
ENERGY: Benchmark U.S. crude lost 16 cents to $59.22 a barrel. It picked up $1.55 to settle at $59.38 a barrel on Wednesday. Brent crude oil, the international standard, shed 21 cents to $65.48 a barrel. The contract gained $1.41 to $65.69 a barrel in the previous session.
CURRENCIES: The dollar rose to 107.97 yen from 107.79 yen late Wednesday. The euro weakened to $1.1364 from $1.1371.
Dallas, June 27 (AP/UNB) — A Texas jury ruled Wednesday that Chinese technology giant Huawei stole trade secrets from a Silicon Valley startup, but jurors declined to levy damages, saying Huawei didn't benefit from the theft.
The jury in US District Court in Sherman, Texas, also rejected Huawei's claims that Cnex Labs Inc. co-founder Yiren Huang stole its technology while he worked at a Huawei subsidiary.
Huawei Technologies Co. is embroiled in a trade dispute between China and the US, which has accused Chinese companies such as Huawei of committing forced technology transfers and stealing trade secrets.
The Cnex case isn't directly related to that trade dispute, though it's overseen by the same federal judge, Amos Mazzant III, who is assigned to a Huawei lawsuit against the US government. Huawei says that a ban on federal agencies and contractors buying its equipment is unconstitutional.
Cnex General Counsel Matthew Gloss called Huawei a "bully," saying, "We're a small company. We didn't seek this fight .... They wanted to shut us down."
In a statement, Huawei called the Cnex ruling a "mixed verdict" and said it was considering its next steps.
Cnex, which has financial backing from Microsoft and Dell Technologies, works on solid-state drives, the types of storage common in smartphones and other popular devices. They start faster and are more reliable than traditional hard disks, though they are typically more expensive.
Huawei said Huang started Cnex three days after leaving Huawei's Futurewei unit in 2013 and began filing patent applications less than a month later based on work he did there. Huawei also accused Huang of poaching its employees and alleged that one was caught downloading thousands of pages of confidential Huawei documents.
The jury found that Huang did violate a contract provision regarding disclosing patent applications, but it awarded no damages after concluding Futurewei didn't prove harm.
Lawyers for San Jose, California-based Cnex countered that Futurewei hired Huang in 2011 as a pretext to steal his ideas. In court documents, Cnex accused Huawei Deputy Chairman Eric Xu of directing an effort to reverse-engineer Cnex technology. Huawei lawyers denied the accusation.
Washington, Jun 26 (AP/UNB) — President Donald Trump said Wednesday that he's under little pressure to reach a trade deal with China when he meets late this week with President Xi Jinping and is prepared to impose further tariffs on Chinese imports.
"The Chinese economy's going down the tubes," Trump said in an interview with Fox Business Network. "They want to make a deal more than I do."
The president has threatened to impose tariffs on an additional $300 billion in Chinese imports — on top of the $250 billion in goods he's already taxed — a move that would extend his import taxes to virtually everything China ships to the United States . He says the new tariffs might start at 10%. Earlier, the administration had said additional tariffs might reach 25%.
The two countries are sparring over the Trump administration's allegations that Beijing steals technology and coerces foreign companies into handing over trade secrets. Trump and Xi are scheduled to meet at the Group of 20 leaders' meeting Friday and Saturday in Osaka, Japan.
Trump also suggested that he may have identified a new trade adversary: Vietnam. Asked about reports that Chinese products were being diverted to Vietnam to avoid his tariffs on goods from China, Trump asserted that "Vietnam takes advantage of us even worse than China."
Asked whether he was planning to impose tariffs on Vietnamese products, the president said his administration was "in discussions" with Vietnam.
Brussels, Jun 26 (AP/UNB) — Acting U.S. Defense Secretary Mark Esper is making it clear to Turkey that it will face economic sanctions if it goes ahead with the purchase of a Russian missile defense system.
Esper met with Turkish Defense Minister Hulusi Akar on Wednesday during a NATO meeting. Officials say there was no progress in the stand-off between the two allies.
The U.S. has told Turkey that it will not be allowed to buy the F-35 fighter jet if it continues with plans to buy the Russian S-400 system.
A senior defense official traveling with Esper says that message was repeated during what was described as a frank and candid discussion. Turkey has said the S-400 purchase is a done deal.
The official spoke on condition of anonymity to discuss a private meeting.
London, June 26 (AP/UNB) — Bank of England Governor Mark Carney says he'd be inclined to back a stimulus package to shore up the British economy if the country crashes out of the European Union at the end of October with no deal.
In testimony to lawmakers, Carney said Wednesday that the response from the bank's rate-setting panel over a 'no-deal' Brexit "would not be automatic" and will depend on the impacts on demand, supply and on the exchange rate. A fall in the pound could lead to a rise in inflation that could prompt some rate-setters to increase interest rates.
Carney said "some of us, myself included" think it's "more likely" that some stimulus will be provided but that there were "no guarantees" on that.