Asia report: Markets fall as global tensions continue to rise

Markets in Asia finished their Tuesday sessions in the red, with investors keeping their wallets closed amid signs of rising geopolitical tension globally.

In Japan, the Nikkei 225 was down 2.67% at 22,010.78, as the yen strengthened 0.54% against the dollar to last trade at JPY 112.21.

The broader Topix index was 2.63% weaker at 1,650.72.

On the mainland, the Shanghai Composite was 2.26% lower at 2,594.83, and the smaller, technology-heavy Shenzhen Composite fell 1.92% to 1,300.29.

“Yesterday's 4.1% rally in the Shanghai Composite Index is likely to have been a dead cat bounce,” quipped analysts at DBS Group Research in an earlier note.

They said any stimulus from Beijing should not be viewed as a boost, but rather as a cushion for a slowing economy against external headwinds - alluding to the ongoing trade war with the United States.

South Korea’s Kospi was off 2.57% at 2,106.10, while the Hang Seng Index in Hong Kong slipped 3.08% to 25,346.55.

Seoul’s close was its lowest in more than 18 months.

Weakness in Asia followed a relatively poor showing on Wall Street overnight, as investors remained cautious around a number of ongoing geopolitical disputes.

The latest revelations around the death of journalist Jamal Khashoggi led to a global dumping of Saudi Arabian stocks.

Khashoggi is believed to have died while inside the Saudi embassy in Turkey, with Turkish officials claiming to have evidence he was murdered by officials, and global leaders roundly criticising the Middle Eastern kingdom.

The Saudi regime initially claimed to have no knowledge of Khashoggi’s whereabouts, before conceding he died during a “fistfight” inside the embassy, and then admitting in the last 24 hours that he was in fact killed intentionally.

Traders are also keeping a watchful eye on the other major burning geopolitical fire - the ongoing trade dispute between the US and China.

An official from the People’s Republic has told American investors at a meeting in Beijing that the administration was not fearful of a full-blown trade war with the United States.

“China never wants a trade war with anybody, not to mention the US, who has been a long term strategic partner, but we also do not fear such a war,” said foreign committee member Zhang Qingli through a translator.

Oil prices were lower, with Brent crude last down 1.89% at $78.35 per barrel and West Texas Intermediate falling 1.64% to $68.24.

In Australia, the S&P/ASX 200 was 1.05% softer at 5,843.10, with the hefty financials subindex and the energy sector in the red by 1.18% and 3.21% respectively.

Private hospital operator Healthscope went against the trend in Sydney, leaping 19.33% after it confirmed a takeover offer from a consortium.

That offer was worth AUD 4.11bn, according to reports.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 returned from a long weekend to fall 1.5% to 8,673.18 - a four month low for the Wellington benchmark.

It was led lower by medical technology specialist Fisher & Paykel Healthcare, which slid 4.4% after a court in Germany upheld a patent claim from its competitor ResMed in a dispute that has so far lasted two years.

Both of the down under dollars were weaker on the greenback, with the Aussie last behind 0.21% at AUD 1.4151 and the Kiwi retreating 0.05% to NZD 1.5257.