Asia report: Markets mixed as investors watch US-China talks

Stocks in Asia finished in a mixed state on Thursday, as investors closed their wallets and watched for news from ongoing trade negotiations between the US and China.

In Japan, the Nikkei 225 eked out gains of 0.05% to close at 21,724.95, as the yen strengthened 0.07% against the dollar to last trade at JPY 111.41.

The broader Topix index was on the back foot in Tokyo, slipping 0.11% to close out its session at 1,620.05.

On the benchmark index, Apple screen supplier Japan Display went against the trend, rocketing 8.33% amid reports that it was the preferred supplier of OLED screens for the next-generation Apple Watch wearable device.

According to Reuters, it would be Japan Display’s first push into the OLED screen sector - these are displays which use less power and offer crisper image reproduction than their LCD counterparts.

Japan Display currently supplies LCD displays for Apple’s mid-market iPhone XR device.

On the mainland, the Shanghai Composite was 0.94% higher at 3,246.57, and the smaller, technology-heavy Shenzhen Composite rose 0.45% to 1,780.02.

South Korea’s Kospi was ahead 0.15% at 2,206.53, while the Hang Seng Index in Hong Kong lost 0.17% to settle at 29,936.32.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics adding 0.75%, while SK Hynix was 1.88% lower.

All eyes were on Washington as the session began on Thursday, as the US and China began the latest round of trade negotiations overnight in the US capital.

Sentiment was given a boost during Wednesday’s session in Asia, following reports that the two economic superpowers were close to brokering a deal, although the hardest parts of the negotiations were yet to be resolved.

White House economic adviser Larry Kudlow said at a press event that China had now accepted the legitimacy of US concerns around intellectual property, technology transfer and cybersecurity threats.

“They have for the first time acknowledged that we have a point … several points, Kudlow said, adding that Beijing had previously been “in denial”.

Oil prices rebounded from earlier weakness as the region went to bed, with Brent crude last up 0.03% at $69.33 per barrel, and West Texas Intermediate adding 0.05% to $62.49.

In Australia, the S&P/ASX 200 slid 0.83% to end the day at 6,232.80, with the energy subindex among the leading losers, falling 1.86% as oil prices weakened earlier in the day.

Of the major Aussie players in that sector, Beach Energy fell 4.31%, Santos was off 2.18%, and Woodside Petroleum slid 2.07%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 0.5% at 9,892.60, led lower by energy generator and retailer Contact, which was off 2.7%.

That sector was mostly in the red on the island nation’s benchmark index, with Contact’s peers Mercury and Genesis also on the back foot, as well as energy infrastructure firm Vector.

Both of the down under dollars were marginally stronger on the greenback, with the Aussie last ahead 0.02% at AUD 1.4057, and the Kiwi advancing 0.01% to NZD 1.4751.