Asia report: Markets mostly lower amid ongoing trade concerns

Most markets in Asia finished lower on Thursday, as investor sentiment continued to be low following negativity around the most recent round of trade talks between China and the US.

In Japan, the Nikkei 225 was down 1.11% at 22,437.01, as the yen strengthened 0.51% against the dollar to last trade at JPY 109.52.

The broader Topix lost 1.21% in Tokyo, with the stronger yen having an impact on major exporters - particularly carmakers.

Honda Motor was down 3.39% and Toyota lost 3.05%.

On the mainland, the Shanghai Composite was off 0.44% at 3,154.89, and the smaller, technology-heavy Shenzhen Composite slid 0.42% to 1,827.06.

South Korea’s Kospi lost 0.24% to 2,466.01, while the Hang Seng Index in Hong Kong managed gains of 0.31% to 30,760.41.

Carmakers were under pressure on the Korean peninsula, with Hyundai Motor off 3.11% and Kia Motors 2.82% below the line.

The Bank of Korea stood pat on interest rates earlier on Thursday, holding them at 1.5% as was widely forecast by the market.

Sentiment around US-China trade relations took a further hit overnight, after the Department of Commerce made a surprise announcement that it was investigating car imports due to “national security” concerns.

That followed comments from president Donald Trump that the framework within which bilateral talks between Washington and Beijing were being held made things “too hard to get done”.

Earlier still, Trump said he was unsatisfied with the most recent negotiations held with the People’s Republic.

Oil prices were lower, with Brent crude last down 1.13% at $78.91 per barrel, and West Texas Intermediate off 1.2% at $70.99.

In Australia, the S&P/ASX 200 eked out gains of 0.08% to finish at 6,037.10, while across the Tasman Sea, New Zealand’s S&P/NZX 50 rose 0.4% to 8,590.77.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.11% at AUD 1.3215, and the Kiwi strengthening 0.15% to NZD 1.4440.