Major markets in Asia slipped in morning trade even amid greater optimism for U.S.-China relations.

Mainland Chinese stocks fell as the Shanghai composite was down 0.47%, while the Shenzhen composite tumbled 0.87%, and the Shenzhen component declined 0.51%.

Hong Kong’s Hang Seng index was flat.

Trade optimism boosted sentiment as U.S. President Donald Trump on Friday said he had “a very good talk” with China’s leader Xi Jinping about the so-called phase one trade deal they struck in mid-December. That indicated more progress has been made after they reached the initial agreement.

The president said in a tweet that China has started “large scale” purchases of U.S. agricultural products, and a formal deal signing is being arranged. On Saturday, he said both countries would “very shortly” sign the deal.

In other positive trade developments, China on Monday said it will lower import tariffs on over 850 products from Jan.1, including frozen pork, as well as some information technology products starting July 1.

Other Asia markets

Japan’s Nikkei 225 was flat, and the Topix index fell 0.24%. Australia’s S&P/ASX 200 was down 0.34%.

Major miners in Australia fell in morning trade. Rio Tinto was down 1.62%, and Fortescue Metals declined 1.46%. BHP Group fell 1.37%. Gold and oil stocks also saw declines.

South Korea’s Kospi declined 0.22%.

MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed.

Over in Singapore, the country’s consumer inflation data is set to be released on Monday.

Meanwhile, China’s state-backed semiconductor fund over the weekend announced plans to reduce holdings in some tech firms, according to a Reuters report. The state fund planned to cut its stakes in Gigadevice Semiconductor, chipmaker Shenzhen Goodix Technology and Hunan Goke Microelectronics by about one percentage point each, according to those companies’ statements.

That came as all three firms had huge stock gains this year, the report said.

U.S. stocks soared to fresh record highs Friday, with the S&P 500 rising 0.5% to 3,221.23. The Nasdaq Composite rose 0.4% to 8,924.96, notching an eight-day winning streak. The Dow Jones Industrial Average climbed 78.13 points, or 0.3% to 28,455.09.

Currencies and oil

The U.S. dollar index, which tracks the greenback against a basket of its peers, was last at 97.653, retreating from a high of 97.758 last week.

The Japanese yen traded at 109.40 against the dollar, a touch weaker from levels above 109.2 last week.

The Australian dollar last changed hands at $0.6904, strengthening from an earlier low of 0.6886.

Oil prices declined during Asia morning hours. Brent crude was down 0.27% to $65.96 and U.S. crude futures dropped 0.30% to $60.26 per barrel.

Here’s the economic calendar for Wednesday (all times in HK/SIN):

1:00 p.m.: Singapore’s consumer price index

— CNBC’s Yun Li contributed to this report

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