Asia report: Markets lower as US threatens China with even further tariffs

Asian bourses were lower across the board on Wednesday, as investors were faced with a fresh round of trade tension instigated by Donald Trump’s White House.

In Japan, the Nikkei 225 was down 1.19% at 21,932.21, as the yen was 0.21% weaker against the dollar to last trade at JPY 111.23.

Trade-heavy plays were the hardest hit in Tokyo, led by carmakers, with Honda Motor falling 1.04% and Nissan off 2.06%.

On the mainland, the Shanghai Composite fell 1.78% to 2,777.20, and the smaller, technology-heavy Shenzhen Composite slid 1.96% to 1,554.62.

South Korea’s Kospi was 0.59% lower at 2,280.62, while the Hang Seng Index in Hong Kong was off 1.29% at 28,311.69.

Carmakers were also on the back foot in Seoul, being joined by the blue-chip technology stocks at the wrong end of the index, with Hyundai Motor down 1.62% and Samsung Electronics off 0.65%.

After a couple of positive sessions ahead of an expected bumper earnings season, investor sentiment turned sour in Asia on Wednesday after the US released a list of $200bn worth of Chinese goods on which it was proposing further tariffs.

The goods would be subjected to levies of 10%, US trade representative Robert Lighthizer said.

He added that his officer would go ahead with the required public notice and comment period before the imposition of the punitive charges.

Markets had been under pressure in the previous few weeks ahead of the imposition of US tariffs on $34bn of Chinese goods, and subsequent retaliatory tariffs from China, which came into effect last Friday.

After that, US president Donald Trump said China could be up against tariffs on another $500bn of goods.

Oil prices were lower as the region went to bed, with Brent crude last down 1.89% at $77.40 per barrel, and West Texas Intermediate off 1.12% at $73.29.

In Australia, the S&P/ASX 200 ended the session off 0.68% at 6,215.60, led lower by the energy, materials and utilities subindices.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 0.2%, settling at 9,001.39, led lower by dairy products producer Synlait Milk, which was off 2.2%.

The down under dollars were both weaker on the greenback, with the Aussie last off 0.71% at AUD 1.3502, and the Kiwi retreating 0.56% to NZD 1.4711.