Asia report: Markets mixed as Trump's circus of instability continues

Markets in Asia were mixed on Monday, as traders turned their attention to the upcoming two-day policy meeting of the Federal Reserve in the US.

Japan’s Nikkei 225 was down 0.62% at 19,975.67, as the yen strengthened on the dollar, last gaining 0.38% to JPY 110.71.

On the mainland, the Shanghai Composite was up 0.39% at 33,250.49, and the smaller, technology-centric Shenzhen Composite was up 0.48% at 1,854.66.

South Korea’s Kospi eked out gains of 0.06% to 2,451.53, while the Hang Seng Index in Hong Kong was up 0.53% at 26,846.83.

Weakness in the dollar was atop many traders’ minds during the session, after another weekend of political instability in the White House.

Late last week, Donald Trump’s press secretary Sean Spicer resigned unexpectedly after the president appointed Anthony Scaramucci as his new communications director.

That came after news that special counsel Robert Mueller’s investigations into the Trump administration were being broadened to include the president’s business deals before entering office.

Oil prices were lower during Asian trading, but picked up again in early European hours with Brent crude last up 1.31% at $48.70 per barrel, and West Texas Intermediate adding 1.1% to $46.28.

In Australia, the S&P/ASX 200 closed down 0.61% at 5,688.07, dragged down by the hefty financials subindex, which lost 0.77%.

The major regional banks were all below the waterline, with Australia and New Zealand Banking Group down 0.73%, Commonwealth Bank of Australia losing 0.48%, National Australia Bank off 1.02% and Westpac Banking Corporation down 0.77%.

Energy plays were also lower on the weaker oil price, with Oil Search losing 1.96%, Santos down 2.15% and Woodside Petroleum 3.02% softer.

New Zealand’s S&P/NZX 50 was up 0.1% at 7,682.29, led higher by Stride Property, which was ahead 1.8%.

Discount retail giant Warehouse Group announced it was selling its financial services arm, including a number of popular credit card and insurance services, to SBS Bank, in a bid to concentrate on its struggling core retail offer.

The company confirmed the New Zealand franchise for Diner’s Club, which it also owns, was not a part of the transaction.

It was a mixed picture for the down under dollars, with the Aussie last 0.44% stronger on the greenback at AUD 1.2578, while the Kiwi was 0.21% weaker at NZD 1.3442.