Asia report: Markets mixed as trade optimism continues to grow
Markets in Asia finished mixed on Tuesday, as hopes for some sort of trade deal between the US and China continued to simmer after fresh comments from officials in Washington.
In Japan, the Nikkei 225 was up 0.47% at 22,974.13, as the yen strengthened 0.06% against the dollar to last trade at JPY 108.89.
Of the major components on the benchmark index, automation specialist Fanuc was down 0.9% and fashion firm Fast Retailing lost 0.7%, while technology conglomerate SoftBank Group gained 2.6%.
The broader Topix index was 0.86% firmer by the end of trading, to close its session in Tokyo at 1,662.68.
On the mainland, the Shanghai Composite was down 0.87% at 2,954.18, and the smaller, technology-heavy Shenzhen Composite lost 0.94% to 1,642.68.
South Korea’s Kospi slipped 0.04% to 2,092.69, while the Hang Seng Index in Hong Kong was off 0.39% at 26,786.76.
Concerns for Hong Kong’s economic outlook continued, after chief executive Carrie Lam said she was expecting the special administrative region to record negative growth for 2019, amid ongoing political demonstrations that have lasted since June.
The city’s latest GDP estimates are set to be released on Thursday, with officials and analysts expecting Hong Kong to record a second consecutive quarter of negative growth, pushing it into recession.
It was a mixed end to the session for the blue-chip technology stocks in Seoul, with chipmaker SK Hynix rising 0.12%, while Samsung Electronics finished 0.39% weaker.
Investors had their attention firmly on the US-China trade front during the session, after the Office of the US Trade Representative said overnight that Washington would consider expanding some of its tariff exclusions on $34bn worth of Chinese goods.
US President Donald Trump also weighed in, saying he was expecting a trade deal with China to be signed “ahead of schedule”, although he did not offer any further information on the timing of a deal.
“China’s Xi Jinping plus President Trump are due to attend the Asia-Pacific Economic Cooperation meeting in Chile next month,” said said CMC Markets analyst David Madden.
“Phase one of the trade deal is tipped to be signed then.”
Oil prices were lower as the region went to bed, with Brent crude last down 1.03% at $60.94 per barrel, and West Texas Intermediate off 1.6% at $54.93.
In Australia, the S&P/ASX 200 eked out gains of 0.07% to finish its trading day at 6,745.40, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.05% at 10,793.75 after returning from that country's Labour Day long weekend.
The down under dollars were a mixed picture against the greenback, with the Aussie last 0.29% stronger at AUD 1.4581, while the Kiwi weakened 0.01% to NZD 1.5750.