Asia report: Markets mixed as US confirms next round of China tariffs

Markets in Asia finished in a mixed state on Wednesday, as Chinese markets fell after a solid rebound on Tuesday amid ongoing reactions to global trade tensions, largely instigated by Washington.

In Japan, the Nikkei 225 was down 0.08% at 22,644.31, as the yen strengthened 0.29% against the dollar to last trade at JPY 111.06.

Oil and coal plays were the biggest losers in Tokyo, dropping 2.13%, with almost two-thirds of the benchmark’s sectors closing in the red.

SoftBank Group ensured the telecoms subindex remained in the green, however, as it rose 4.78% on the back of a strong earnings report on Tuesday.

On the mainland, the Shanghai Composite slid 1.23% to 2,745.11, and the smaller, technology-heavy Shenzhen Composite lost 1.9% to 1,466.70.

Fresh data out of China earlier in the session showed a fall in the country’s trade surplus with the US to $28.1bn in July, amid a tense trade dispute between Beijing and the White House.

June’s trade surplus figure was $28.9bn.

General sentiment in the region was dampened by an announcement from the US overnight that 25% tariffs on $26bn of Chinese goods would be implemented on 23 August.

“Seeing is believing, it appears, with respect to the looming threat of a sharp escalation in trade tariff wars,” quipped National Australia Bank head of foreign exchange Ray Attrill in a note.

Trade between the two countries was already being affected by lower charges on $34bn of Chinese goods, which came into effect on 6 July.

Officials in the People’s Republic responded with their own retaliatory tariffs then, and have promised to do the same now.

South Korea’s Kospi eked out gains of 0.06% to close at 2,301.45, while the Hang Seng Index in Hong Kong was up 0.39% to 28,359.14.

The Hyundai chaebol was rocked by reports of restructuring plans in Seoul, with Hyundai Motor adding 2% and Hyundai Glovis losing 4.04%.

Oil prices were lower, with Brent crude last down 0.15% at $74.54 per barrel, and West Texas Intermediate losing 0.47% to $68.85.

In Australia, the S&P/ASX 200 rose 0.23% to 6,258.50, led higher by the hefty financials subindex as well as the materials sector.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was off 0.04% to 8,872.09, led lower once again by payment technology firm Pushpay, which was off 4.6%.

The down under dollars were a mixed bag, with the Aussie last 0.14% weaker against the greenback at AUD 1.3495, while the Kiwi strengthened 0.01% to NZD 1.4840.