HONG KONG, Nov 8 — Asian markets fell today as investors took their foot off the pedal after another healthy week, with eyes fixated on the next move in the China-US trade talks.

News out of Beijing that it had agreed a plan with Washington to start rolling back tariffs if negotiations progress fired a rally in late business on Thursday, and helped the Dow and S&P 500 to more records.

The announcement fanned hopes the world’s economic superpowers — who are currently finalising a mini trade pact as part of a wider deal — can resolve their long-running tariffs war that has hobbled the global growth outlook.

It also eased worries about the negotiations caused by reports that a hoped-for signing ceremony this month between Donald Trump and Xi Jinping could be delayed until December.

“The elevation of discussion from a trade truce to a possible tariff rollback is important and suggests both China and the US have come under pressure to seal a deal,” National Australia Bank’s Tapas Strickland said in a note.

But dealers struggled in Asia after the White House failed to confirm the plan, while a report said there was some opposition within the administration to such a move.

Meanwhile, Trump trade adviser and China hawk Peter Navarro told Fox Business “there is no agreement at this time to remove any of the existing tariffs as a condition of the phase one deal. The only person who can make that decision is Donald Trump”.

Neil Wilson, chief market analyst at Markets.com, said: “There a strong sense of the ‘if’ about this. If a first phase trade deal is done, there is agreement to roll back some existing tariffs, but only if the deal is agreed. Usual story — mixed reports really all just noise.”

Pound subdued

Adding to the malaise was a certain amount of profit-taking after another strong week across equity markets, which have been on a rally since last month as the trade talks showed progress.

Hong Kong fell 0.7 per cent following a six-day advance, while dealers in the city were bracing for a fresh weekend of protests after the death of a student who sustained head injuries when he fell during clashes with police.

Shanghai gave up 0.5 per cent after data showed Chinese exports and imports fell again last month, though not as quickly as expected, while Singapore was off 0.9 per cent and Seoul retreated 0.3 per cent.

Taipei lost 0.2 per cent, Manila was down 0.7 per cent and Jakarta gave up 0.1 per cent.

Mumbai fell 0.2 per cent and India’s rupee sank 0.5 per cent after Moody’s lowered its ratings outlook on the country’s debt.

The pound remained subdued after taking a hit on Thursday from an economic growth downgrade for 2020 by the Bank of England that fuelled speculation it could cut interest rates soon.

The central bank kept rates on hold but the decision was split for the first time in more than a year, with two dissenters calling for a reduction in borrowing costs to fend off the feared downturn.

In early trade, London and Frankfurt dipped 0.3 per cent, while Paris slipped 0.4 per cent.

Key figures around 0820 GMT

Tokyo — Nikkei 225: UP 0.3 per cent at 23,391.87 (close)

Hong Kong — Hang Seng: DOWN 0.7 per cent at 27,651.14 (close)

Shanghai — Composite: DOWN 0.5 per cent at 2,964.18 (close)

London — FTSE 100: DOWN 0.3 per cent at 7,381.24

Pound/dollar: DOWN at US$1.2811 from US$1.2813 at 2100 GMT

Euro/pound: UP at 86.25 pence from 86.23 pence

Euro/dollar: UP at US$1.1050 from US$1.1049 

Dollar/yen: DOWN at 109.27 yen from 109.29 yen

West Texas Intermediate: DOWN 50 cents at US$56.65 per barrel

Brent North Sea crude: DOWN 49 cents at US$61.80 per barrel

New York — Dow: UP 0.7 per cent at 27,674.80 (close) — AFP