Asian markets mostly fell on Wednesday as investors took their foot off the pedal following weeks of gains, with focus on the signing later in the day of the China-US trade deal.
While the mood on trading floors was broadly upbeat as tensions between the economic superpowers ease, analysts warned there will not likely be much more progress on the next phase of talks ahead of the November US presidential election.
The mini pact, which has de-escalated a two-year stand-off that has jolted the global economy, saw the White House halve tariffs on USD 120 billion of Chinese goods imposed on September 1 and cancel another round set for December 15. In return, Beijing pledged vast sums to buy US products including pork and soybeans.
Still, the next round of negotiations is expected to be the toughest, with key issues including China's massive subsidies for state industry and forced technology transfer proving key sticking points.
Treasury Secretary Steven Mnuchin denied a report that it could include provisions to roll back more levies on China after the vote.
But he did tell Fox Business network: "I think phase one is an enormous step in the right direction." Officials said full details would be made public after the signing ceremony in Washington.
"We should not expect further tariff relief until after the November presidential elections, suggesting that today's agreement is probably as good as it gets for 2020," said National Australia Bank's Tapas Strickland.
But he added: "Importantly for China... the deal will allow it to re-focus on its domestic economy which should reduce fears of a slowing economy."