Asian markets traded higher on Wednesday afternoon following developments on the U.S.-China trade front. The Nikkei 225 in Japan traded 0.48% higher in afternoon trade, while the Topix index added 0.32%. Over in South Korea, the Kospi returned to negative territory as it slipped 0.25%. Shares of Apple supplier LG Display dropped more than 2.5% after the firm reported a larger-than-expected second-quarter operating loss. The company also said it is looking to diversify its supplier base amid the ongoing diplomatic spat between Tokyo and Seoul that has seen Japan place export curbs on important materials to South Korea. South Korea on Wednesday asked Japan to scrap its plan to remove the former from its so-called white list of minimum trade restrictions. Wednesday is the deadline for public comment on the Japanese government's plan to remove South Korea from the list, the Nikkei Asian Review reported Tuesday. Mainland Chinese shares rose by the afternoon, with the Shanghai composite adding 1.01% and the Shenzhen component gaining 1.29%, while the Shenzhen composite advanced 1.391%. Hong Kong's Hang Seng index also rose 0.93%. Shares of cosmetic manufacturer L'Occitane jumped more than 4% after Nomura upgraded the stock to a "buy." Meanwhile, the S&P/ASX 200 in Australia rose 0.65% as most sectors saw gains. Meanwhile, Boris Johnson is set to be the U.K.'s next prime minister after winning the ruling Conservative Party's leadership race on Tuesday. Johnson has previously stated that the U.K. must leave the European Union by the October 31 deadline "do or die, come what may." The British pound last stood at $1.2432, after seeing a high of $1.248 yesterday. "In our view, Johnson's desire to push for Brexit, deal or no deal, increases the chance of an early general election and some possibly nasty GBP outcomes," Rodrigo Catril, senior foreign exchange strategist at National Australia Bank, wrote in a note. US-China relations On the trade front, in-person trade negotiations between the U.S. and China will begin next week, sources told CNBC. They said White House officials are looking at a longer-term timeline. "Markets have been waiting for so long for (a) face-to-face meeting and it looks like it's going to happen now next week," Rob Subbaraman, head of global macro research at Nomura, told CNBC's "Street Signs" on Wednesday. "I think it's still really early days," Subbaraman said. "There's still a long way to go in terms of … the so-called U.S. wanting China to change its structural policies." Furthermore, he added, the issues between the two economic powerhouses and Taiwan are "relevant" to the discussion. China's defense ministry said Wednesday that issues regarding Taiwan are becoming more acute, Reuters reported. China had earlier asked the U.S. State Department to cancel a potential $2.2 billion arms sales to Taiwan. Subbaraman said the timing of the Wednesday's announcement from China was "interesting" and that there was a "reasonable chance" it was linked to the upcoming U.S.-China trade negotiations. Currencies and oil The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.752 rising from levels below 97.5 yesterday. The Japanese yen, widely viewed as a safe-haven currency, traded at 108.15 after weakening from levels below 108.0 yesterday. The Australian dollar was at $0.6981 after declining from levels above $0.702 in the previous session. Oil prices rose in the afternoon of Asian trading hours, with international benchmark Brent crude futures gaining 0.25% to $63.99 per barrel, while U.S. crude futures advanced 0.37% to $56.98 per barrel. Here's a look at some of the data set to be released in the day ahead: * Japan: Line earnings for the second quarter, Mitsubishi Motor earnings for the first quarter Source: CNBC
