Asia report: Markets mixed as US delegation heads to Beijing

Asian markets were mixed on Tuesday ahead of the next stage of trade negotiations between representatives from China and the US.

US trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will lead a delegation to China on Tuesday to resume trade negotiations, which reports say are near to resolving the long-running trade dispute between the two nations.

Joshua Mahony, senior market analyst at IG, said: "Today sees US and Chinese trade negotiators reconvene in Beijing, with markets more expectant than ever over the potential for a final resolution to these hugely important talks. The Yuan has been a key barometer of market sentiment, with the recent lull in talks seeing USDCNH drift higher as the prospect of a final breakthrough fell off the agenda. However, with the topic coming back into play, we are likely to see greater traders shift back into the Yuan if we see signs of an impending positive development."

Japan's Nikkei 225 remains closed for a 10 day holiday as the nation celebrates the ascension of Crown Prince Naruhito, who will become emperor on 1 May, while the Japanese yen was up 0.28% against the US dollar at JPY111.34.

China's Shanghai Composite index meanwhile climbed 0.54% to 3,078.34 while the tech-heavy Shenzhen Composite gained 0.68% to 1,636.59, despite disappointing factory activity data ahead of its three day closure for Labour Day holidays.

Aucma Co, Liaoning Hongyang Energy Resource Invest Co and Aeolus Tyre Co Ltd led the way higher, each gaining more than 10%.

The Hong Kong Hang Seng index meanwhile dropped 0.65% to 29,699.11 amid declines for property and energy stocks before the market's day off on Wednesday for Labour Day.

South Korea's Kospi index dropped 0.58% to 2,203.59 as electronics giant Samsung dropped 0.65% after the company missed analysts' forecasts with its latest quarterly numbers, reporting its weakest profit in two years.

Brent Crude was up 0.91% at $72.70, while WTI climbed by 1.01% to $64.15.

Australia's S&P/ASX 200 was down 0.54% at 6,325.47 as weaker than expected manufacturing data from China saw miners drag the index lower, with BHP Group and Rio Tinto down 0.96% and 2.43%, respectively.

Finally, New Zealand's S&P/NZX 50 remained flat, edging just 0.01% up to 10,013.83, while the Australian dollar dropped 0.04% against the greenback to A$1.42 and New Zealand's dollar rose by 0.08% to NZ$1.50.