The Nikkei 225 closes down by 0.02% at 21,139.71

Nikkei 14-02

There's a hint of caution in Asian trading as stocks are trading near flat levels or slightly lower on the day despite the fact Bloomberg is reporting that Trump is considering to extend the trade deadline by 60 days.

Risk assets got a bit of a jolt higher earlier and we have since seen the aussie and kiwi extend gains as we move towards European trading. However, Asian equities are less buoyant with the Hang Seng index still down by 0.3% dragged lower by tech shares.

After posting decent gains over the past few days, it's understandable that investors aren't getting too carried away just yet until more concrete evidence presents itself.

But if you want to look at it from another angle, it could also mean that plenty of the optimism from trade talks this week are already baked into markets; so risk assets may just have to rely on something else if they want to pull off a sustained rally over the next few weeks.