Asian markets retreated Tuesday as investors awaited fresh developments in the China-US trade talks, while Beijing lowered its growth forecasts for this year and unveiled massive tax cuts to support the stuttering Chinese economy.
Equity investors tracked losses on Wall Street, where the global rally hit a bump as optimism that the world's top two economies are heading for a tariffs deal was replaced by a need for clarity on any agreement.
Shares have enjoyed a blockbuster start to the year so far but OANDA senior market analyst Alfonso Esparza, said: "Trade optimism could only take the stock market so far.
"High level talks between the two largest economies have been ongoing and although they appear close to bearing fruit, the fact remains that the optimism has already been priced in. Details on the agreement will be needed to unlock gains."
"We must be fully prepared for a tough struggle."
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