Perhaps as early as this week we should anticipate hearing about completion a significant trade agreement with South Korea. The deal is known as “KORUS” (KOR+U.S.), and has been in negotiations for over a year.

Part of the recent agreement within the auto-sector of the deal, between Moon Jae-in and President Donald Trump, via Lighthizer and Ross, is an exemption of U.S. steel tariffs for South Korea in exchange for a doubling of U.S. auto exports; from 25,000 to 50,000 American made cars, per U.S. automaker, per year. (link)

The results within KORUS exhibit the intended outcome of the global tariff proposal from President Trump as leverage to enhance the administration policy of reciprocity. The world is taking notice, and China is now beginning to signal their understanding of President Trump leading the international discussion of reciprocal trade.

The unspoken background is that all nations, who have acquiesced to the overwhelming demands of China’s trade position, are now beginning to reassess the value of President Trump confronting the equation head-on. Ultimately it is beginning to sink-in that all nations can benefit from correcting a trade imbalance within their own position. In essence, U.S. President Trump is moving the entire global trade dynamic.

The timing for a U.S. leveraged KORUS deal could not be better. On the geopolitical stage President Trump, through his sheer will, has thrown open the doors to a denuclearized Korean peninsular and is about to engage in direct discussions with North Korean leader Kim Jong-un.

The ramifications for peace on the Korean peninsular, and the economic outcomes therein, are seismic for South East Asia. Thus we see today stunning reports of Kim Jong-un heading to Beijing for discussions of unknown substance.

There is no doubt both Kim Jong-un (DPRK) and Chinese President/Chairman Xi Jinping must engage in talks about the ramifications. China has long used the DPRK as a proxy province for their own geopolitical strategy against the U.S. and western interests.

POTUS Trump using economic leverage to break down the walls of totalitarian regimes is a stunning position for two nations (China and DPRK) who must have thought such an action would be unconscionable a mere eighteen months ago.

The Era of the Economic Titan is Back!

PS. A U.S./South Korea trade deal enhances the backdrop, and leverage, of U.S. position toward NAFTA. Canada and Mexico have aligned with the TPP multilateral trade deal. POTUS Trump is negotiating bi-lateral deals with nations within TPP (Japan, Australia, Vietnam, South Korea all ongoing).</s>Why did this happen?

Please make sure your browser supports JavaScript and cookies and that you are not blocking them from loading. For more information you can review our Terms of Service and Cookie Policy.</s>The US and South Korea reached an agreement on revising their six-year-old bilateral trade deal and the US said it wouldn't impose President Donald Trump's tariffs on steel imports from its ally in Asia.

[SEOUL] The US and South Korea reached an agreement on revising their six-year-old bilateral trade deal and the US said it wouldn't impose President Donald Trump's tariffs on steel imports from its ally in Asia.

The two countries reached agreement "in principle" on the trade deal known as Korus, South Korea's trade ministry said in a statement on Monday. While South Korea avoids the steel tariff, shipments of the metal to the US will be limited to a quota of about 2.7 million tonnes a year, according to the statement.

Trade Minister Kim Hyun-chong will brief the media on the outcome of the trade negotiation from 11.30am in Seoul.

The announcement came after Treasury Secretary Steven Mnuchin said US Trade Representative Robert Lighthizer reached "a very productive understanding". "We expect to sign that agreement soon," Mr Mnuchin said on the "Fox News Sunday" programme.

"South Korea will reduce the amount of steel that they send into the United States as a part of this."

Mr Mnuchin called the agreement "an absolute win-win". The quota is unlikely to hurt South Korea's steel exports as sales to the US account for 11 per cent of total steel shipments overseas, the South Korean ministry said. The quota is set at 70 per cent of the average steel sales to the US during 2015-2017.

Friction over Korus came about when Mr Trump started to blame US's large trade deficit with South Korea on the agreement. The issue has been seen as a potential wedge between the allies as both their leaders plan for expected meetings with North Korean leader Kim Jong-un.

South Korea's trade surplus with the US was about US$18 billion last year, down from US$23 billion in 2016, according to the Korea International Trade Association. Cars accounted for more than 70 per cent of the value of the surplus.

On cars, which is an area of particular interest for the Trump administration, the US will maintain tariffs on South Korea's exports of pick-up trucks until 2041, from the previously agreed 2021. South Korea will ease some of its safety and environmental regulations on imported US cars, the statement shows.

South Korea didn't agree to any additional opening of the agriculture market and also maintained its stance in other sensitive areas, the statement said. The two countries were able to reach agreement by narrowing the range of discussions and will seek to settle the details soon, the ministry said.</s>South Korea agrees to further open auto market to US

SEOUL, South Korea (AP) — South Korea has agreed to further open its auto market to the United States as the two countries prepare to amend their six-year-old free trade agreement, its top trade negotiator said Monday.

South Korea's Trade Minister Kim Hyun-chong said the United States will end tariffs on South Korean-made pick-up trucks in 2041 instead of 2021. Each American carmaker will also be able to export 25,000 additional vehicles to South Korea each year without having to comply with domestic safety regulations. South Korea also will ease emission standards for American cars shipped from 2021-2025, when the Asian country is due to set new import regulations.

Kim said South Korea also won an exemption from increased import tariffs on steel products. The third-largest steel exporter to the United States after Canada and Brazil, South Korea was among 12 countries whose exports of steel and aluminum U.S. President Donald Trump recently said would be hit with heavy tariffs. But South Korea's steel tariff exemption is subject to a quota of about 2.7 million tons of steel products a year, about 74 percent of its exports in 2017.

The agreements in principle were announced Monday just hours after Trump said the United States was on the verge of amending its trade agreement with South Korea, which took effect in 2012. They came as a relief to South Korean industries, although the steel companies said they had wanted a larger quota of tariff-free exports to the United States.

The auto sector is among the most contentious issues in South Korea's trade dealings with the U.S. The Korean Automobile Manufacturers Association praised the government's efforts to protect South Korean automakers and avoid major changes on sensitive issues such as adjusting tariffs.

The revised agreement appears like significant concessions by South Korea but is expected to have little impact on its exports to the United States or its domestic auto market. No local auto companies export pick-up trucks made in South Korea to the United States, according to Kim.

While U.S. carmakers will be able to ship 50,000 cars to South Korea annually, 25,000 more than before, without being subject to domestic safety regulations no American car brand sold more than 10,000 vehicles in South Korea last year.

South Korean negotiators managed to avoid changes in treatment of its agriculture sector, a highly sensitive area in domestic politics.

The two allies started working on amending the free trade pact in August after Trump blamed the arrangement for causing the U.S. trade deficit with South Korea.

The president told reporters at a Friday news conference that trade deals are being made with various countries and then highlighted South Korea, a key economic and national security partner in Asia. The United States ran a $10.3 billion trade deficit with South Korea last year.

While the United States posted a trade surplus of $10.7 billion with South Korea in the services sector, it recorded a goods trade deficit of $27.7 billion in 2016, leaving an overall deficit of $17.0 billion.

After Trump's remarks, Commerce Secretary Wilbur Ross said he hoped a final agreement with Seoul would be announced next week.</s>South Korea agrees to further open auto market to US

SEOUL, South Korea (AP) — South Korea has agreed to further open its auto market to the United States as the two countries prepare to amend their six-year-old free trade agreement, its top trade negotiator said Monday.

South Korea's Trade Minister Kim Hyun-chong said the United States will end tariffs on South Korean-made pick-up trucks in 2041 instead of 2021. Each American carmaker will also be able to export 25,000 additional vehicles to South Korea each year without having to comply with domestic safety regulations. South Korea also will ease emission standards for American cars shipped from 2021-2025, when the Asian country is due to set new import regulations.

Kim said South Korea also won an exemption from increased import tariffs on steel products. The third-largest steel exporter to the United States after Canada and Brazil, South Korea was among 12 countries whose exports of steel and aluminum U.S. President Donald Trump recently said would be hit with heavy tariffs. But South Korea's steel tariff exemption is subject to a quota of about 2.7 million tons of steel products a year, about 74 percent of its exports in 2017.

The agreements in principle were announced Monday just hours after Trump said the United States was on the verge of amending its trade agreement with South Korea, which took effect in 2012. They came as a relief to South Korean industries, although the steel companies said they had wanted a larger quota of tariff-free exports to the United States.

The auto sector is among the most contentious issues in South Korea's trade dealings with the U.S. The Korean Automobile Manufacturers Association praised the government's efforts to protect South Korean automakers and avoid major changes on sensitive issues such as adjusting tariffs.

The revised agreement appears like significant concessions by South Korea but is expected to have little impact on its exports to the United States or its domestic auto market. No local auto companies export pick-up trucks made in South Korea to the United States, according to Kim.

While U.S. carmakers will be able to ship 50,000 cars to South Korea annually, 25,000 more than before, without being subject to domestic safety regulations no American car brand sold more than 10,000 vehicles in South Korea last year.

South Korean negotiators managed to avoid changes in treatment of its agriculture sector, a highly sensitive area in domestic politics.

The two allies started working on amending the free trade pact in August after Trump blamed the arrangement for causing the U.S. trade deficit with South Korea.

The president told reporters at a Friday news conference that trade deals are being made with various countries and then highlighted South Korea, a key economic and national security partner in Asia. The United States ran a $10.3 billion trade deficit with South Korea last year.

While the United States posted a trade surplus of $10.7 billion with South Korea in the services sector, it recorded a goods trade deficit of $27.7 billion in 2016, leaving an overall deficit of $17.0 billion.

After Trump's remarks, Commerce Secretary Wilbur Ross said he hoped a final agreement with Seoul would be announced next week.</s>SEOUL, South Korea (AP) — South Korea has agreed to further open its auto market to the United States as the two countries reached an agreement in principle on amending their six-year-old free trade agreement, its top trade negotiator said Monday.

South Korea's Trade Minister Kim Hyun-chong said the United States will lift tariffs on South Korean-made pick-up trucks in 2041 instead of 2021. It will also be able to export 25,000 additional American vehicles to South Korea without having to comply with domestic regulations. South Korea will ease emission standards for American cars shipped from 2021-2025 when the Asian country sets new import regulations.

Kim said South Korea also won an exemption from import tariffs on steel products. The third-largest steel exporter to the United States after Canada and Brazil, South Korea was on the list of 12 countries U.S. President Donald Trump recently said would be hit with heavy tariffs on their exports of steel and aluminum products to the U.S.

The South Korean announcement came hours after President Donald Trump said the United States is on the verge of amending its trade agreement with South Korea.

The president told reporters at a Friday news conference that trade deals are being made with various countries and then highlighted South Korea, a key economic and national security partner in Asia. The United States ran a $10.3 billion trade deficit with South Korea last year.

After Trump's remarks, Commerce Secretary Wilbur Ross said he hoped a final agreement with Seoul would be announced next week.

The free trade pact between the United States and South Korea went into effect in 2012.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.</s>BEIJING, March 26 (Reuters) - Premier Li Keqiang said on Monday China and the United States should maintain negotiations and he reiterated pledges to ease access for American businesses, as China scrambles to avert a trade war.

Li told a conference that included global chief executives that China would treat foreign and domestic firms equally, would not force foreign firms to transfer technology and would strengthen intellectual property rights, repeating promises that have failed to placate Washington.

The United States asked China in a letter last week to cut a tariff on U.S. autos, buy more U.S.-made semiconductors and give U.S. firms greater access to the Chinese financial sector, the Wall Street Journal reported on Monday, citing unidentified sources.

Alarm over a possible trade war between the world's two largest economies has chilled financial markets as investors anticipated dire consequences should trade barriers go up due to President Donald Trump's bid to cut the U.S. deficit with China.

U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer listed steps they want China to take in a letter to Liu He, a newly appointed vice premier who oversees China's economy, the Journal said, quoting sources with knowledge of the matter.

The newspaper reported that Mnuchin was considering a visit to Beijing to pursue negotiations.

Despite a steady stream of fierce rhetoric from Chinese state media lambasting the United States for being a "bully" and warning of retaliation, Chinese and U.S. officials are busy negotiating behind the scenes.

"With regard to trade imbalances, China and the United States should adopt a pragmatic and rational attitude, promote balancing through expansion of trade, and stick to negotiations to resolve differences and friction," Li told the conference in Beijing, state radio reported.

China has offered to buy more U.S. semiconductors by diverting some purchases from South Korea and Taiwan, the Financial Times reported, citing people briefed on the negotiations. China imported $2.6 billion of semiconductors from the United States last year.

Chinese officials are also working to finalise rules by May - instead of the end of June - to allow foreign financial groups to take majority stakes in Chinese securities firms, the Financial Times said.

"I anticipate that for political reason it would be logical for China to respond, because countries do," Blackstone Group Chief Executive Stephen Schwarzman told Reuters on Monday on the sidelines of the Beijing conference at which Li spoke, the China Development Forum.

"That's why I view this more as a skirmish, and I think the interests of both countries are served by resolving some of these matters."

Fears of a trade war mounted this month after Trump imposed tariffs on steel and aluminium imports, and then on Thursday specifically targeted China by announcing plans for tariffs on up to $60 billion of Chinese goods.

On Friday, China responded to the U.S. tariffs on steel and aluminium by declaring plans to levy additional duties on up to $3 billion of U.S. imports. The list of targeted goods contained no mention of soybeans or aircraft, China's two biggest U.S. import items.

China could also inflict pain on U.S. multinationals that rely on China for a substantial - and growing - portion of their total revenues, said Alex Wolf, senior emerging markets economist at Aberdeen Standard Investments.

"This could put U.S. companies such as Apple, Microsoft, Starbucks, GM, Nike, etc in the firing line," Wolf said in a note.

China can increase the regulatory burden on U.S companies through new inspections and rules; ban travel; stop providing export licenses of key intermediate goods; raise the tax burden on U.S. multinationals in China; or block U.S. companies from the government procurement market, he said.

Trump unveiled the planned tariffs targeting Chinese goods after a U.S. inquiry found China guilty of intellectual property theft and unfair trade, by forcing U.S. investors to turn over key technologies to Chinese firms.

On Saturday, Liu told Mnuchin in a telephone call the U.S. inquiry violated international trade rules and China would defend its interests, the official Xinhua news agency reported.

A U.S. Treasury spokesman confirmed the call, but declined to comment on the content of any letter or on a possible visit by Mnuchin to Beijing.

"Secretary Mnuchin called Liu He to congratulate him on the official announcement of his new role," the spokesman told Reuters. "They also discussed the trade deficit between our two countries and committed to continuing the dialogue to find a mutually agreeable way to reduce it."

The Trump administration has demanded that China immediately cut its $375 billion trade surplus with the United States by $100 billion.

"The U.S. has been wielding sticks worldwide over the past year. Washington needs to be taught a real lesson and such a lesson can only be taught by China, the world's second-largest economy," China's Global Times newspaper said in an editorial.

The widely read tabloid is run by the ruling Communist Party's official People's Daily, although its stance does not necessarily mirror government policy.

Privately, Liu and Mnuchin exchanged letters in the past week on further opening China's financial services sector and cutting Chinese tariffs on imported cars, according to the Financial Times.

China has a 25 percent tariff on U.S. cars and has talked recently of lowering it.

China's imports of U.S. motor vehicles totalled $10.6 billion in 2017, about 8 percent of the country's overall U.S. imports by value, according to U.S. government data.

On the reported offer to increase U.S. semiconductor imports, it is unclear how U.S. chips would replace South Korean and Taiwanese chips, since there is minimal overlap between U.S. chips and those of the two Asian producers.

China is heavily dependent on foreign semiconductors, one of its biggest import categories by value. That said, the U.S. accounted for just 1 percent of China's total semiconductor imports last year by value, according to Reuters calculations based on Chinese customs data. (Reporting by Ryan Woo; Additional reporting by David Lawder in Washington and Matthew Miller, Ben Blanchard, Elias Glenn and Stella Qiu in Beijing Editing by Simon Cameron-Moore and Kim Coghill)</s>The United States and South Korea have agreed to settle their differences on trade.

The South Korean government said Monday that the two countries had struck a deal on a new version of the free trade agreement that has linked the two economies for the past six years.

South Korea has also secured a partial exemption from President Donald Trump's new steel tariffs.

Trump had been hugely critical of the existing trade deal between the two countries, slamming it as "horrible" and threatening to yank the United States out of it altogether. That raised fears of a damaging dispute that could drive a wedge between the United States and one of its closest allies in Asia. South Korea is the United States' sixth-biggest trading partner.

But after starting talks in January to renegotiate the deal, which is known as Korus, the two sides have now reached agreement on the key points, according to top officials from both countries.

Related: US and South Korea go head-to-head on trade

Under the revised deal, US automakers will get greater access to the South Korean market. Far more cars are shipped from South Korea to the United States than in the other direction, making up a big chunk of the $23 billion annual trade deficit between the two countries.

"On the whole, this is a good result," said Troy Stangarone, a senior director at the Korea Economic Institute of America, a Washington-based think tank.

Winning concessions for American automakers was crucial for the United States, he said, while South Korea will be pleased that it didn't have to give ground on opening up its agricultural industry to US imports.

Last year, the United States imported nearly $16 billion worth of South Korean passenger cars but sent only $1.5 billion worth in the other direction, according to US government figures.

Related: The world is on the brink of a trade war

South Korea's Trade Ministry said Monday it will double to 50,000 the quota for vehicles that meet US safety rules that can be imported into the country. Beyond that threshold, cars shipped from the US will have to comply with South Korean auto-safety regulations.

US automakers have previously complained that having to comply with the South Korean rules puts them at disadvantage.

Agreeing on changes to the trade deal "takes a potentially divisive issue off of the table" as the United States and South Korea prepare for talks with North Korea's leadership over its nuclear weapons program, Stangarone said.

US Treasury Secretary Steven Mnuchin told Fox News on Sunday that the United States had reached "a very productive understanding" with South Korea on the trade deal, but didn't provide further details.

The new agreement was announced at the same time as details on South Korea's partial exemption from Trump's controversial tariffs on steel and aluminum. The country is one of the biggest suppliers of steel to the United States.

Related: What happens when the world's two biggest economies turn on each other?

Under the arrangement, 70% of the average amount of steel that South Korea exports to the United States each year will be permanently exempt from the new 25% tariff, South Korean officials said.

Several other US allies -- including Canada, Mexico and the European Union -- have been granted temporary exclusions.

South Korea's benchmark Kospi stock index was little changed Monday following the trade deal news. But shares in Posco (PKX), the country's biggest steelmaker, gained 2%.

-- CNN's Sol Han and Yoonjung Seo contributed to this report.</s>SEOUL (Reuters) - The United States and South Korea agreed to revise a trade pact sharply criticized by U.S. President Donald Trump, Seoul said on Monday, with U.S. automakers winning improved market access and Korean steelmakers hit with quotas but avoiding hefty tariffs.

The planned changes in the U.S.-Korea Free Trade Agreement (KORUS) were seen as limited, leaving South Korea’s key passenger car exports untouched and helping soothe fears that Trump’s tough approach could start a spiraling global trade war.

In April, Trump told Reuters he would either renegotiate or terminate what he called a “horrible” trade deal that has doubled the U.S. goods trade deficit with South Korea since 2012.

Asian shares steadied on Monday, stemming last week’s hefty losses after Trump’s action on steel and aluminum, and his plans to slap tariffs on up to $60 billion in Chinese goods. [MKTS/GLOB]

The agreement means South Korea will be forced to cut its steel exports to the U.S. by 30 percent of past three years’ average, in exchange for becoming the first U.S. ally to receive an indefinite exemption on steel tariffs imposed by Trump.

“We had heated discussions,” South Korean Trade Minister Kim Hyun-chong said at a media briefing in Seoul. “The latest agreement removed two uncertainties,” he said, referring to steel tariff exemptions and KORUS renegotiation.

Last week, Trump temporarily excluded six trade partners, including Canada, Mexico and the European Union from higher U.S. import duties on steel and aluminum which came into effect on Friday.

South Korea has received a quota of about 2.68 million tonnes of steel exports, or 70 percent of the annual average Korean steel exports to the United States between 2015-2017, which will be exempt from the new tariffs, the ministry said in a statement.

South Korea is not allowed to export steel products exceeding that quota to the U.S. market, a ministry official said.

“This leaves a bad precedent of exchanging steel tariffs - which is a breach of international trade law - for a legitimate free trade agreement, in negotiations,” said Wonmog Choi, professor of law at Ewha Womans University.

South Korea is the third-largest steel exporter to the United States and the world’s top importer of Chinese steel, leading to concerns it was a conduit for China’s excess capacity.

Trump was elected in 2016 after promising to punish what he saw as unfair trade practices by other countries, particularly China.

While Trump was adamant the KORUS deal needed renegotiating, the trade spat risked undermining relations between Seoul and Washington at a crucial time, as Washington and Seoul work closely to try to contain a nuclear-armed North Korea.

“We are at a time when U.S.-South Korea cooperation is needed more than ever ahead of the inter-Korean summit and the summit between North Korea and the United States,” said a senior official at South Korea’s presidential Blue House, who was not authorized to speak to media.

South Korean officials said that while the deal agreed was the best they could hope for, further pressure on trade was likely under Trump’s presidency.

“If President Trump becomes a two-term president ... I believe there will be continuous (trade) risks during that time,” Trade Minister Kim said.

Shares in South Korean steelmakers rallied on Monday, with Dongbu Steel (016380.KS) leading gains as tariff exemptions were confirmed.

South Korea’s steel association said in a statement it was a “relief” that South Korea has been excluded from U.S. steel tariffs, but regrettable it was unable to secure higher quotas.

As part of the KORUS revision, the countries agreed to extend U.S. tariffs on Korean pickup trucks by 20 years until 2041.

No South Korean automakers currently export pickup trucks to the United States, but Hyundai Motor (005380.KS) said last year it planned to launch a model there to catch up with a shift away from sedans.

Hyundai said on Monday it was “too early to elaborate on the details such as the estimated timing of the model release and production location”. Its shares fell 1.3 percent.

Under KORUS revisions, U.S. automakers will be able to bring into South Korea 50,000 vehicles per automaker per year that meet U.S. safety standards, not necessarily Korean standards, up from 25,000 vehicles previously.

Kim said no automakers previously exceeded the 25,000-vehicle threshold. Ford Motor Co (F.N) and General Motors (GM.N) each shipped fewer than 10,000 vehicles last year.

“I don’t see a high chance of automakers expanding U.S. imports,” he said.

Kim Jong-hoon, a former chief negotiator for the KORUS FTA, said South Korea had fared relatively well in negotiations.

“South Korea gave concessions in autos in return for steel tariff exemptions,” he told Reuters. “This is not a free trade, but a managed trade.”</s>SYDNEY (Reuters) - U.S. stock futures led global shares higher on Monday after reports that the United States and China have quietly started negotiations to improve U.S. access to Chinese markets eased fears of a trade war between the two economic giants.

E-Mini futures ESc1 for the S&P 500 .SPX leaped more than 1 percent while Japan's Nikkei .N225 erased earlier losses of 1.3 percent to end 0.7 percent higher.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.4 percent, flipping back to positive territory from a 0.5 percent fall.

European shares ticked up on opening, with Germany's Dax .GDAXI, France's Cac .FCHI and Britain's FTSE .FTSE all about 0.3 percent higher.

The Wall Street Journal reported U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer listed steps that Washington wants China to take in a letter to Liu He, a newly appointed vice premier who oversees China’s economy.

Signs of talk between the two economic giants allayed fear of an escalating trade war, sparked after U.S. President Donald Trump moved to slap tariffs on Chinese goods, on top of import duties on steel and aluminum, prompting a defiant response from Beijing.

The United States also agreed to exempt South Korea from steel tariffs, imposing instead a quota on steel imports as the two countries renegotiate their trade deal.

“If we do start to hear more favorable news from the U.S. administration and indeed from the Chinese side over the next few trading sessions, then we may see a sharp reversal of the recent moves in the market,” said Nick Twidale, chief operating officer at Rakuten Securities Australia.

Still many investors remained cautious given the high level of uncertainty on where any bilateral negotiations may lead.

“Protectionism remains a source of volatility and downside risk for equities,” analysts at JPMorgan said in a note.

“Asia ex-Japan equity outperformance is in part a function of faster growth and capital inflows - both clearly at risk in a trade war.”

In the uncertain global economic climate, investors looked to pile into the Japanese yen JPY=, traditionally a safe haven asset thanks to the country's massive current account surplus.

Speculators added short dollar bets to their portfolios, taking the net short position to its highest in more than a year, according to calculations by Reuters and the Commodity Futures Trading Commission for the week to March 20.Short yen positions were cut to the smallest since November 2016.

By late Asian trade, the yen had eased slightly from near 16-month highs to 105.08 per dollar while the Australian and New Zealand dollars, a liquid proxy for China plays, staged a welcome rebound.

The Aussie AUD= was up 0.5 percent while the kiwi NZD= gained 0.8 percent.

The dollar index .DXY tracking the greenback against six other major currencies was near a one-month low at 89.423.

In commodities, international Brent crude futures LCOcv1 opened above $70 per barrel for the first time since January but the gains could not be sustained as the ongoing trade disputes weighed on global markets. [O/R]

Spot gold XAU= was flat at $1,346.8199 an ounce.
South Korea and the United States reach agreements on trade and steel tariffs.