Asian stocks retreat from five-month highs

Asian stocks are trading in the red below five-month highs hit yesterday, indicating the investors are likely reassessing if Washington and Beijing would be able to reach a trade deal. 

MSCI's broadest measure of Asia-Pacific shares outside Japan has dropped 0.5 percent from the highest since mid-September,  according to Reuters. 

Shares in Japan, Australia, New Zealand, South Korea and India are reporting losses. The Shanghai Composite index, however, is up 0.6 percent, possibly on trade optimism. Meanwhile, the S&P 500 futures are currently down 0.35 percent. 

The pullback from five month highs comes after JP Morgan analysts asked investors to curbed their enthusiasm as the extension of the US tariff deadline was a "foregone conclusion". 

In FX markets, the anti-risk JPY is mldly bid, seemingly due to the decline in the S&P 500 futures and the rising tensions between India and Pakistan. Pound, meanwhile, is trading close to four-week highs on hopes UK Prime Minister Theresa May will delay a Brexit deadline.