Stocks mixed as the US and China worry about the Fed

Shares were mixed on Thursday in early Asian talks, as investors weighed their worries over the US-China trade dispute over an accommodative rate hike by the Federal Reserve.

In Sydney, the S & P / ASX 200 index fell by 0.3%, that of Kospi in Seoul by 1% and that of Hong Kong in Hang Kong by 0.1%. Tokyo is closed today.

Overnight on Wall Street, the Fed's decision to reduce rate hike expectations has helped equities reduce past losses due to concerns over the trade war. The benchmark, the S & P 500, closed down 0.3%, while the technology-driven Nasdaq posted a 0.1% gain. US Treasury posted a muscular recovery.

Kerry Craig, a strategist at JPMorgan Asset Management, said that "the Fed's willingness to maintain longer the current level of rates and the announcement to end the deterioration of the balance sheet by October indicate that the Fed is close to what she thinks neutral policy should be. "

But investors are wary as US negotiators travel to Beijing for talks next week to reach a final deal on trade.

Following reports that China continues to push back US demands, US President Donald Trump muted the expectations on Wednesday by declaring that an agreement was "going well", but that the US was considering tariffs in place for "China to respect the agreement."

The dollar index, comparing the greenback to a basket of peers, stabilized after falling 0.7% overnight following the Fed's decision. The Japanese yen, a haven in market uncertainty, was also quiet at ¥ 110.67, after gaining 0.6% on Wednesday.