HONGKONG: Asian markets fluctuated Thursday as optimism over China-US trade talks was tempered by Donald Trump's top negotiator, while investors also digested weak factory data from Beijing and fresh geopolitical tensions in Kashmir.

The global rally that has characterised most of this year took a knock after US Trade Representative Robert Lighthizer told lawmakers that 'real progress' had been made with China, but a lot of work was still needed before a pact is signed.