Asia report: Markets mixed as US and China translate trade deal

Markets in Asia finished in a mixed state on Friday, as investors in some countries returned from the Christmas holiday, and after a fresh round of record highs on Wall Street overnight.

In Japan, the Nikkei 225 was down 0.36% at 23,837.72, as the yen strengthened 0.12% against the dollar to last trade at JPY 109.50.

Of the benchmark’s major components, Uniqlo owner Fast Retailing lost 2.01%, while automation specialist Fanuc rose 0.02% and technology conglomerate SoftBank Group added 1.47%.

The broader Topix index went the other way by the end of trading in Tokyo, rising 0.11% to close the session at 1,733.18.

Fresh data out of Japan disappointed markets, with retail sales declining 2.1% year-on-year in November.

That was significantly wider than the 1.7% fall forecast in a Reuters poll, following an increase in sales tax in October.

On the mainland, the Shanghai Composite was 0.08% weaker at 3,005.04, and the smaller, technology-heavy Shenzhen Composite lost 0.67% to close at 1,697.91.

Earlier in the week, China customs data showed an improvement in soybean imports in November, as the People’s Republic upped its purchases of American agricultural goods in a show of goodwill amid trade negotiations.

South Korea’s Kospi was 0.29% at 2,204.21, while the Hang Seng Index in Hong Kong returned from its Christmas break to add 1.3% to 28,225.42.

Both of the down under dollars were well into the green in Seoul, with Samsung Electronics up 2.64% and chipmaker SK Hynix 2.89% firmer.

Market sentiment began the day relatively rosy, after another record-beating session on Wall Street overnight as investors continued to be upbeat on the first phase trade deal between the US and China.

The deal is reportedly in the process of being translated, with the two economic superpowers hoping to sign the dotted line in January.

On Thursday, China’s Commerce Ministry told media that its officials remained in close contact with their counterparts in Washington.

That followed comments from US president Donald Trump on Christmas Eve, when he said that the deal was “getting done”.

Oil prices were higher as the region entered the weekend, with Brent crude last up 0.18% to $68.04 per barrel, and West Texas Intermediate rising 0.24% to $61.83.

In Australia, the S&P/ASX 200 rose 0.4% in light trading on the first session back after Christmas, to settle at 6,821.70.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 fell 0.3% to 11,602.12, with Wellington’s bourse also experiencing light trading in its first session back post-Christmas.

Both of the down under dollars were stronger on the greenback, with the Aussie ahead 0.35% at AUD 1.4349, and the Kiwi strengthening 0.43% to NZD 1.4928.