Not time to go risk-on, say strategists
Strategists remain broadly optimistic that a US-China trade deal is likely to materialise, despite Donald Trump's latest threat to hike tariffs on Chinese imports later this week. Here is a round-up of their views.
Genevieve Cua
US PRESIDENT Donald Trump's threat to hike tariffs on Chinese imports later this week took markets by surprise, causing an immediate pullback.
The Shanghai Composite Index fell more than 5 per cent on Monday; the Hang Seng Index fell 2.9 per cent and the MSCI Asia ex Japan also tumbled by more than 1.7 per cent.
Strategists, however, remain broadly optimistic, putting forward their base case that a deal is likely to materialise. Most appear to have assigned a probability of about 60 to 70 per cent to this scenario. But most say it is too early to ramp up on risk. In the near term, investors should brace for yet more pullbacks.
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