Asia report: Markets end week mixed as trade optimism lingers

Markets in Asia finished in a mixed state on the final trading day of the week, with investor attention firmly focussed on developments on the US-China trade front.

In Japan, the Nikkei 225 was down 0.77% at 21,878.90, as the yen weakened 0.1% against the dollar to last trade at JPY 107.94.

Of the major components on the benchmark index, automation specialist Fanuc was up 2.23%, while fashion firm Fast Retailing slipped 0.33% and technology conglomerate SoftBank Group slid 1.96%.

Screen technology giant Japan Display, a supplier to US consumer technology behemoth Apple, plunged 10.45% after it reported that Chinese investment company Harvest Group was pulling out of a rescue package for the firm.

Asia’s semiconductor sector was mixed after shares in American chip firm Micron plunged on Wall Street overnight, with Tokyo Electron down 1.89% in Japan, while Renesas rose 1.11%.

The broader Topix index was 1.17% weaker by the close of play in Tokyo, finishing the week at 1,604.25.

On the mainland, the Shanghai Composite was 0.11% higher at 2,932.17, and the smaller, technology-heavy Shenzhen Composite rose 0.91% to 1,612.26.

In fresh economic data out of China, the country’s industrial profits fell 2% year-on-year for August, according to the National Bureau of Statistics.

It marked a turnaround from recent months, with industrial profits growing by 2.6% in July and 3.1% in June.

South Korea’s Kospi was down 1.19% at 2,049.93, while the Hang Seng Index in Hong Kong lost 0.33% to close at 25,954.81.

Both of the blue-chip technology stocks were in the red in Seoul on the back of Micron’s woes stateside, with Samsung Electronics down 0.91% and SK Hynix falling 2.28%.

The ongoing trade relationship woes between Washington and Beijing once again hogged the agenda, with the two economic superpowers set to resume talks on 10 October in the US capital.

Both countries have been at loggerheads for more than a year, slapping round after round of punitive tariffs on each other.

Sentiment around the likelihood of a solution improved earlier in the week, after US president Donald Trump said a deal between the nations could be “sooner than you think”, and China confirmed it had purchased large quantities of American agricultural goods in a show of good faith.

“The market’s destiny is at Donald Trump’s fingertips,” said London Capital Group senior market analyst Ipek Ozkardeskaya.

“A single tweet from Donald Trump could send equities rallying, as it could shatter the market sentiment.

“And Trump’s next move is anybody’s guess.”

Oil prices were mixed as the region entered the weekend, with Brent crude last down 0.38% at $62.50 per barrel, and West Texas Intermediate eking out gains of 0.02% to $56.42.

In Australia, the S&P/ASX 200 added 0.58% to end its trading session at 6,716.10, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.1% at 10,836.50.

The down under dollars were a mixed picture against the greenback, with the Aussie last 0.11% stronger at AUD 1.4802, while the Kiwi weakened 0.1% to NZD 1.5900.