Asia report: Markets mixed over renewed China concern

Asian markets ended Wednesday in a mixed state, with China shares in the red and analysts pointing to fresh concerns over the country's economy, following poor trade data for February.

The Shanghai Composite closed down 1.35% to 2,862.12, while the Shenzhen Composite fell 2.11% to 1,713.44.

"Consolidation and reflection seems to be the name of the game after a strong run in commodities and equities," said IG chief market strategist Chris Weston. He said there was "clear concern" from clients over "whether it is time to increase bearish positioning again".

Weaker-than-expected trade data this week was also adding to concern, with National Australia Bank currency strategist Rodrigo Catril saying "renewed concerns over China's economic outlook following [Tuesday's] softer than expected trade numbers halted a five-day equity rally and triggered a bid for safe haven assets."

The data showed exports fell 25.4% year-on-year in February, with imports sliding 13.8%, both far wider than analyst predictions.

Catril said the subsequent reactions were caution from investors over the soft demand for China's exports, and while it was too early to make any major assumptions, March trade figures would be extremely important to the markets.

South Korea's Kospi finished 0.35% higher at 1,952.25, and the Hang Seng Index closed almost flat at 19,996.26. The Japanese benchmark Nikkei 225 finished down 0.84% at 16,642.20.

Japan's exporting carmakers finished the day mostly down, with Honda losing 0.96%, Nissan down 1.28% and Toyota off by 0.23%. Electronics giant Sony finished up 2.43%.

A stronger yen was to blame for the decline in many exporters, as the safe-haven currency maintained its strength against the greenback. It was last at JPY 112.28 per dollar, ahead by 0.3%.

On the Japanese corporate front, a report in Nikkei revealed Canon was a leading contender to take over Toshiba's healthcare business, with a bid of more than JPY 700m (£4.38m). The Toshiba conglomerate was in the middle of a major restructuring following 2015's accounting scandal, with other bidders for the health arm including Fujifilm and a joint venture between Konica Minolta and Permira.

Toshiba shares closed down 2.26%, while Canon's stocks reversed their losses to end up 0.88%.

Oil was ahead again after Asian close, with Brent crude last up 1.74% to $40.35 and West Texas Intermediate up 1.56% to $37.08 per barrel.

The S&P/ASX 200 finished up 0.96% at 5,157.20, led by the country's financial sector, which gained 1.55%. Drops in base metal prices overnight saw mining stocks decline in Sydney, with BHP Billiton losing 1.92%, Fortescue Metals slipping 2.87% and Rio Tinto down 2.12%.

In New Zealand, the S&P/NZX 50 rose for a fifth consecutive session to a new record high of 6,457.25, up 0.2%. A weaker New Zealand dollar buoyed exporting firms, with the index led by activewear exporter Kathmandu - up 3.2% - and health tech manufacturer F&P Healthcare - up 2.3%.

That currency had gained on the greenback since close, however, and was last up 0.5% to NZD 1.4753. The Aussie was also ahead, by 0.64% at AUD 1.3358.