Asia report: Markets mixed as investors look to US-China talks

Markets in Asia finished in a mixed state on Monday, after a choppy session in much of the region as investors held their breath ahead of the next round of trade talks between the US and China.

In Japan, the Nikkei 225 was down 0.6% at 20,649.00, as the yen strengthened 0.15% against the dollar to last trade at JPY 109.39.

The broader Topix index fell 0.68% in Tokyo to settle at 1,555.51.

Technology plays were among the losers of the day, with conglomerate SoftBank Group slipping 1.17% by end-of-play.

On the mainland, the Shanghai Composite was off 0.18% at 2,596.98, and the smaller, technology-heavy Shenzhen Composite slid 0.38% to 1,314.99.

South Korea’s Kospi slipped 0.02% to 2,177.30, while the Hang Seng Index in Hong Kong managed to add 0.03% to close at 27,576.96.

Samsung Electronics went against the trend of its tech peers to close up 0.67%, but it was the odd one out in Seoul.

Among its sector colleagues on the Korean peninsula, LG Electronics fell 2.59% and SK Hynix was off 3.75%.

Investors remained focussed on the ongoing trade stand-off between Beijing and Washington, with Chinese vice-premier Liu He set to lead a delegation from the People’s Republic to the federal capital this week.

“An open and constructive dialogue is expected, given low-hanging fruits on trade deficit reduction,” noted Mizuho Bank head of economics and strategy Vishnu Varathan.

“But a ‘comprehensive deal’ will elude.”

The two sides apparently remained eager to reach a trade deal before the expiry of their self-imposed tariff truce at the end of March.

Traders also had one eye on the US Federal Reserve, with the Federal Open Market Committee set to hold its next two-day policy meeting from Tuesday.

Members are widely expected to stand pat on interest rates, following their raise of the central bank’s target rate last month.

Oil prices were lower as the region went to bed, with Brent crude last off 1.65% at $60.64 per barrel, and West Texas Intermediate losing 2.09% to $52.59.

In Australia, markets remained closed as traders enjoyed a day off for the national Australia Day holiday.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.04% at 9,114.52 on light trading, as Auckland - the country’s most populous province, and the centre of commercial activity - enjoyed a regional holiday.

The down under dollars were a mixed affair against the greenback, with the Aussie last 0.13% weaker at AUD 1.3941, and the Kiwi strengthening 0.03% to NZD 1.4614.