In Asian Equity Markets indices traded lower Thursday morning. Japan’s Nikkei 225 slipped 1.81% in morning trade, with shares of Tokyo Electron falling more than 4%. The Topix index was 1.47% lower. In South Korea, the Kospi shed 1.64%. Hong Kong’s Hang Seng index fell  2.05% in early trade, with shares of life insurer AIA falling more than 2%. Meanwhile, Australian stocks declined as the S&P/ASX 200 shed around 1.1%. Shares of Westpac fell more than 2.5%, after Australian Prime Minister Scott Morrison called on the lender’s board to reflect “very deeply” over the future of the firm’s CEO.

In Currency Markets the yen rose against the dollar on Thursday after sources close to the White House told Reuters that a U.S.-China trade deal is unlikely this year, shattering investor hopes a partial agreement was imminent and spurring demand for safe havens. The yuan fell to a three-week low in onshore trade on worries the failure to reach a deal to roll back U.S. tariffs could further harm China’s stuttering economy. The yen rose 0.15% to 108.46 per dollar on Thursday. In the onshore market, the yuan fell to 7.0450 versus the dollar, the weakest since Nov. 1, before steadying at 7.0400.

In Commodities Markets oil prices retreated on Thursday after gaining more than 2% in the previous session on bullish U.S. crude inventory data, as a fresh spat over Hong Kong fueled concerns of a further delay in any U.S.-China trade deal. The trade war between the world’s two biggest economies has hit global growth prospects and dominated the outlook for future oil demand. Brent crude futures fell 20 cents, or 0.32%, to $62.20 a barrel. The international benchmark rose 2.5% on Wednesday. West Texas Intermediate (WTI) crude futures fell 17 cents, or 0.3%, to $56.84 per barrel. U.S. crude closed up 3.4% in the previous session.

In US Equity Markets main indexes ended Wednesday’s session lower on concerns that a “phase one” trade deal between Washington and Beijing may not be completed this year, while minutes from the Federal Reserve’s October policy meeting appeared to offer little help. The S&P 500 lost 0.38%, to 3,108.39 and the Nasdaq Composite fell 0.51%, to 8,526.73. The materials index was the biggest percentage decliner of the major sectors on the day with a 1.2% loss. Reports from Target Corp and Lowe’s Cos Inc were bright spots on Wednesday, with their shares jumping 14% and 3.9%, respectively, after the two companies raised their profit forecasts.

In Bond Markets U.S. long-dated yields fell to three-week lows on Wednesday, weighed down by renewed jitters about trade talks with China after news, citing sources, that a “phase one” or preliminary deal may not be completed this year. The United States and China have been tangled in a trade war over the last two years that have resulted in bouts of tit-for-tat tariffs, rocking financial markets and threatening to pressure global growth. New U.S. tariffs on $156 billion in Chinese goods are set to go into effect on Dec. 15, including on holiday gift items. U.S. 10-year note yields fell to a three-week low at 1.728%. They were last down at 1.734%, from 1.786% late on Tuesday.