China Tumbles Ahead of Trump-Xi Meeting

Stocks in Asia slipped on Tuesday, while investors looked toward a meeting between U.S. President Donald Trump and Chinese President Xi Jinping set to happen later in the week.

In Japan, the Nikkei 225 slumped 92.18 points, or 0.4%, to 21,193.81.

The Japanese yen, widely viewed as a safe-haven currency, traded at 107.01 against the U.S. dollar after touching lows around 107.5 yesterday.

In Hong Kong, the Hang Seng index tumbled 327.02 points, or 1.2%, to 28,195.98. China-listed bank shares tumbled amid concerns over increased lending to small firms. Bank of Communications dropped 3.02% and China Construction Bank fell 1.34%. Their Hong Kong-listed counterparts shed 3.87% and 1.37%, respectively.

The Australian dollar changed hands at $0.6959 U.S. after seeing an earlier high of $0.6972.

In Shanghai, the CSI 300 subtracted 39.96 points, or 1%, to 3,801.31

Investors await a highly-anticipated meeting between Trump and Xi at the upcoming G-20 summit in Japan. The two leaders are expected to discuss the protracted trade fight between their two countries.

China and the U.S. have already slapped tariffs on billions of dollars worth of each other’s goods over the past year. In May, the two economic powerhouses hiked tariffs targeting some goods. The Trump administration has said previously that Trump is ready to raise tariffs on all Chinese imports into the U.S. if the two countries fail to arrive at a deal.

China’s Ministry of Commerce said in a statement on Tuesday that the country’s Vice Premier Liu He had a phone call with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer on Monday. They discussed trade and agreed to maintain communications, according to the statement.

In other markets

In Korea, the Kospi index slid 4.69 points, or 0.2%, to 2,121.64

In Singapore, the Straits Times Index shed 7.26 points, or 0.2%, to 3,304.27

In Taiwan, the Taiex Index retreated 72.73 points, or 0.7%, to 10,706.72

In New Zealand, the NZX 50 gained 29.98 points, or 0.3%, to 10,418.30

In Australia, the ASX 200 skidded 7.41 points, or 0.1%, to 6,658.03