Asia report: Markets mostly higher as investors watch US-China tensions

Markets in Asia finished higher on Monday, as investors kept a watchful eye on geopolitical tensions between Washington and Beijing.

In Japan, markets were closed for a public holiday, as the yen weakened 0.07% against the dollar, last trading at JPY 105.99.

On the mainland, the Shanghai Composite was 0.75% firmer at 3,379.25, and the smaller, technology-heavy Shenzhen Composite was 0.21% higher at 2,277.42.

South Korea’s Kospi added 1.48% to 2,386.38, while the Hang Seng Index in Hong Kong was the region’s odd one out, falling 0.63% to 24,377.43.

The blue-chip technology stocks were both stronger in Seoul, with Samsung Electronics up 0.52% and chipmaker SK Hynix rising 0.99%.

Tensions between the United States and China remained at the top of the agenda, after Donald Trump issued executive orders that will see American dealings with Tencent and ByteDance - owners of the WeChat and TikTok apps, respectively - banned in several weeks’ time.

The Trump administration also announced sanctions on 11 individuals connected to China, including Hong Kong leader Carrie Lam, citing their roles in “implementing Beijing’s policies of suppression of freedom and democratic processes” as being behind the move.

“Markets in Asia have started the week rather mixed, as well as a little subdued in the absence of Japanese markets due to a public holiday,” said CMC Markets chief market analyst Michael Hewson.

“The latest Chinese inflation data offered few clues as to how the Chinese economy was doing with CPI showing a rise of 2.7%, while PPI was negative to the tune of -2.4%.”

Oil prices were higher as the region went to bed, with Brent crude last up 0.99% at $44.84 per barrel, and West Texas Intermediate adding 1.46% to $41.82.

In Australia, the S&P/ASX 200 advanced 1.76% to 6,110.20, while across the Tasman Sea, New Zealand’s S&P/NZX 50 managed gains of 0.32% to 11,683.44.

Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.07% at AUD 1.3978, and the Kiwi retreating 0.37% at NZD 1.5183.