Asia report: Markets mixed amid US-China tensions

Markets in Asia finished in a mixed state on Tuesday, following a stellar session on Wall Street overnight, as investors watched the ongoing geopolitical spat between Washington and Beijing.

In Japan, the Nikkei 225 was up 1.88% at 22,750.24 following a holiday on Monday, as the yen weakened 0.18% against the dollar to last trade at JPY 106.15.

Technology giant SoftBank Group lost 2.45%, but among the benchmark’s other major components, robotics specialist Fanuc was up 2.16% and Uniqlo owner Fast Retailing rose 1.02%.

The broader Topix index added 2.54% by the end of trading in Tokyo, to settle at 1,585.96.

On the mainland, the Shanghai Composite was down 1.15% at 3,340.29, and the smaller, technology-focussed Shenzhen Composite lost 1.49% to 2,243.45.

South Korea’s Kospi gained 1.35% to close at 2,418.67, while the Hang Seng Index in Hong Kong added 2.11% to 24,890.68.

It was a mixed session for Seoul’s blue-chip technology stocks, with Samsung Electronics up 0.69%, while SK Hynix lost 0.12%.

The mixed sentiment in Asia came after positive undertones stateside overnight, which saw the Dow Jones Industrial Average advance for the seventh session in a row.

That came despite China imposing sanctions on 11 Americans, including senators Ted Cruz, Tom Cotton, Josh Hawley, Marco Rubio and Pat Toomey.

Beijing’s move was in retaliation to an announcement from Washington last week, that the US would sanction 11 Chinese citizens - including Hong Kong leader Carrie Lam for her role in the “suppression of freedom and democratic processes” in the special administrative region.

All of the US politicians sanctioned by China have been outspoken in their criticism of a new national security law imposed on Hong Kong by authorities in Beijing, which drew widespread condemnation globally.

Oil prices were higher at the end of the Asian day, with Brent crude last up 0.91% at $45.40 per barrel, and West Texas Intermediate adding 1.19% to $42.44.

In Australia, the S&P/ASX 200 advanced 0.47% to 6,183.70, as the hefty financials subindex gained 1.14%.

The big four banks were all positive, with Australia and New Zealand Banking Group up 1.76%, Commonwealth Bank of Australia rising 0.97%, National Australia Bank ahead 2.41%, and Westpac Banking Corporation 2.66% firmer.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was off 0.33% at 11,645.32, as construction conglomerate Fletcher Building advanced 0.29%, even after reporting a loss of NZD 200m ahead of its full results.

The down under dollars were both stronger on the greenback, with the Aussie last aheads 0.23% at AUD 1.3956, and the Kiwi advancing 0.34% to NZD 1.5121.