Asia report: Markets mostly higher after disappointing G7 meeting
Markets in Asia finished mostly higher on Monday, as investors brushed off any depressed sentiment that might have come out of a less-than-impressive G7 meeting and ahead of a landmark meeting between Donald Trump and Kim Jong-un.
In Japan, the Nikkei 225 added 0.48% to 22,804.04, as the yen weakened 0.34% against the dollar to last trade at JPY 109.92.
The oil and coal sector was the winner of the day in Tokyo, with that Topix subindex rising 1,72%, with both retail and technology shares also in the green.
On the mainland, the Shanghai Composite was down 0.48% at 3,052.36, and the smaller, technology-heavy Shenzhen Composite slid 0.58% to 1,741.18.
South Korea’s Kospi was ahead 0.76% at 2,470.15, while the Hang Seng Index in Hong Kong managed gains of 0.34% to 31,063.70.
Manufacturers led gains in Seoul, with Daewoo Engineering and Construction up 6.43%, Hyundai Cement surging 29.86% and Posco rising 3.33%.
Traders in the region were once again watching trade tensions between the US and its allies, after Donald Trump made a surprise withdrawal of support for a G7 declaration on trade and called Canadian prime minister Justin Trudeau “dishonest and weak”.
Tensions were high at the G7 meeting, after Washington implemented metals tariffs on Canada and the EU, with German chancellor Angela Merkel confirming the European Union was preparing its own retaliatory tariffs on the US.
“The G7 meeting over the weekend did not bode well for risk sentiment,” noted analysts at OCBC Bank, though they did say market reaction was mainly constrained to the Canadian dollar.
Investors were also looking ahead to a planned landmark summit between the US president and North Korea’s leader, set down for Tuesday in Singapore.
Both Trump and Kim arrived in the city-state on Sunday, though market watchers were not anticipating anything economically earth-shaking to come from the event.
It was also the start of a week of central bank meetings, with bankers in the US, the eurozone and Japan due to meet, with an interest rate hike expected from the Fed and more details on the winding-down of the asset purchasing programme anticipated from the ECB.
Oil prices were lower, with Brent crude last off 0.9% at $75.78 per barrel and West Texas Intermediate falling 1.06% to $65.05.
Markets in Australia were closed for the Queen’s Birthday holiday, while in New Zealand the S&P/NZX 50 added 0.2% to settle at 8,959.81.
It was led higher by specialist dairy exporter A2 Milk, which rose 3% as it continued to recover from a major fall last month.
The down under dollars were mixed but little changed, with the Aussie last 0.03% stronger on the greenback at AUD 1.3153, while the Kiwi weakened 0.01% to NZD 1.4227.