Asia report: Markets mixed amid post-holiday focus on trade war
Markets in Asia finished in a mixed state on Monday, as investors kept a close eye on the ongoing trade spat between Washington and Beijing, and a number of markets returned for their first full week after the Lunar New Year holidays.
In Japan, markets remained closed for a public holiday, as the yen weakened 0.64% against the dollar to last trade at JPY 110.43.
On the mainland, the Shanghai Composite was 1.36% higher at 2,653.90, and the smaller, technology-heavy Shenzhen Composite added 2.9% to 1,347.94.
South Korea’s Kospi managed gains of 0.17% to close at 2,180.73, while the Hang Seng Index in Hong Kong was 0.71% higher at 28,143.84.
Blue-chip technology play Samsung Electronics was one of the winners of the day in Seoul, with its shares adding 0.45%.
Market watchers were keen for fresh developments in the US-China trade war, ahead of another round of negotiations in Beijing, set down for later this week.
“The reality is that olive branches, rather than rose stalks, are the best that anyone anchored to reality may be looking for,” noted analysts at Mizuho Bank.
Reports on Friday suggested that the two governments had not yet produced a draft document outlining the subjects on which they do and don’t see eye-to-eye, after trade talks in Washington last month.
Both administrations are reportedly keen to reach a deal before a deadline next month, after which the US will apply even further tariffs on imports from China.
The Mizuho Bank analysts noted that US president Donald Trump had confirmed that he would not meet with his Chinese counterpart Xi Jinping before that deadline, but had also stated that there would be no trade deal until the pair have met.
“Therefore that is as good a guaranteeing that there will be no deal before the US-China truce expires.”
Oil prices were lower as the region went to bed, with Brent crude last down 1.09% at $61.43 per barrel, and West Texas Intermediate sliding 2.11% to $51.63.
In Australia, the S&P/ASX 200 slipped 0.18% to settle at 6,060.80, as the hefty financials subindex lost 1.15%.
That sector was led into the red by the region’s big four banks, with Australia and New Zealand Banking Group down 1.3%, Commonwealth Bank of Australia off 1.24%, National Australia Bank falling 1.62%, and Westpac Banking Corporation ending 1.53% weaker.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.4% at 9,210.00, with major energy generator and retailer Contact seeing its shares rising 1.6% as it kicked off earnings season in Wellington.
The firm reported a 28% improvement in EBITDA, thanks to improved wholesale prices for electricity in the domestic market.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.28% at AUD 1.4149, and the Kiwi retreating 0.1% to NZD 1.4846.