Asia report: Markets mixed as Trump comments boost trade hopes

Markets in Asia finished in a mixed state on Thursday, as investors reacted to comments from US president Donald Trump which hinted that a trade deal with China could finally be visible on the horizon.

In Japan, the Nikkei 225 was up 0.13% at 22,048.24, as the yen strengthened 0.16% to last trade at JPY 107.60.

Of the major components on the benchmark index, automation specialist Fanuc was up 2.44% and technology conglomerate SoftBank Group added 0.11%, while fashion firm Fast Retailing lost 0.25%.

The broader Topix index was 0.2% firmer by the close of play in Tokyo, finishing the session at 1,623.27.

On the mainland, the Shanghai Composite was down 0.89% at 2,929.09, and the smaller, technology-heavy Shenzhen Composite slid 2.51% to 1,597.72.

South Korea’s Kospi eked out gains of 0.05% at 2,074.52, while the Hang Seng Index in Hong Kong rose 0.37% to 26,041.93.

Both of the blue-chip technology stocks were in the green in Seoul, with Samsung Electronics last up 0.61%, and chipmaker SK Hynix rising 1.71%.

Comments from United States president Donald Trump dominated the agenda, after he said that a trade deal between Washington and Beijing could be closer “than you think”.

The world’s two largest economies have been battling in a tit-for-tat of trade tariffs and seemingly never-ending negotiations for more than a year.

London Capital Group senior market analyst Ipek Ozkardeskaya noted that Donald Trump remained the “major risk” to the conclusion of any agreement, adding that a tweet would suffice to once again shatter market sentiment.

“Now, it is unsure how the ongoing impeachment inquiry would impact Trump’s mood in October trade negotiations, but we believe that he may concentrate his efforts in sealing a much-desired trade deal with China to divert the market’s attention from his impeachment inquiry and get the stock markets racing higher.

“There is no such thing as a market rally to brush off the impeachment talks and to regain Americans’ appreciation into the 2020 presidential election year.”

Oil prices were lower as the region went to bed, with Brent crude last down 0.14% at $62.30 per barrel, and West Texas Intermediate slipping 0.18% to $56.39.

In Australia, the S&P/ASX 200 was down 0.49% at 6,677.60, and across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.4% lower at 10,822.77.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.37% at AUD 1.4760 and the Kiwi advancing 0.83% to NZD 1.5817.