Asian markets ease; G7 meeting in focus

Markets in Asia were mostly lower on Friday, as investors sentiment remained under pressure in the light of new developments in relation to US trade agreements.

The United States has opted for a tough posture on trade, even with some of its key allies, including Canada, Mexico and the European Union. This subject is expected to be discussed during this year’s G7 summit.

President Donald Trump is set to meet his counterparts from the UK, Canada, Japan, Italy, Germany and France. The G7 event takes place in Quebec.

Trump tweeted on Thursday: “Please tell Prime Minister Trudeau and President Macron that they are charging the U.S. massive tariffs and create non-monetary barriers. The EU trade surplus with the U.S. is $151 Billion, and Canada keeps our farmers and others out. Look forward to seeing them tomorrow.”

Trump also criticized Prime Minister Trudeau for complaining about his tariffs while Canada continues to charge the US “up to 300% on dairy — hurting our Farmers, killing our Agriculture!”

Trump’s rhetoric was not digested positively by other leaders. French President Macron threatened to exclude the US from the final statement release at the end of the meeting.

"The American President may not mind being isolated, but neither do we mind signing a 6 country agreement if need be. Because these 6 countries represent values, they represent an economic market which has the weight of history behind it and which is now a true international force," the French leader tweeted.

In Japan, the Nikkei traded close the flat line, ending 0.53 percent lower at 22,701.50 points, with banking and consumer names among best performers. In Australia, the S&P/ASX 200 struggled for direction during the session, closing at 6,045.20 points, down 0.20 percent.

South Korea’s Kospi benchmark posted a 0.77 percent loss, with automakers and technology easing. Samsung Electronics was down more than one percent.

Hong Kong's Hang Seng Index also traded into red territory by the time of this writing. Meanwhile, China’s Shanghai composite was down 1.36 percent to 3067.15 points.

On the data front, China’s trade balance for May came in below expectations at $24.92 billion, while analysts forecasted a $31.90 billion reading. Exports and imports grew by 12.6 and 26.0 percent, surpassing in both cases estimations of 10.0 and 18.7 percent respectively.

FortFS