Asia report: Markets mostly lower as investors agitate over trade
Markets in Asia finished in the red on Thursday, as investors kept their wallets tentatively closed as US President Donald Trump continued to fan the flames of trade tension with China.
In Japan, the Nikkei 225 was down 0.93% at 21,402.13, as the yen strengthened 0.2% against the dollar to last trade at JPY 109.88.
Of the major components on the Tokyo benchmark, automation specialist Fanuc was down 3.33%, while fashion group Fast Retailing added 1.28% and technology conglomerate SoftBank Group rose 0.7%.
Carmaker Honda Motor was 4.68% lower by end-of-play, even after the company released forecasts for a 6% improvement in operating profit for the current financial year.
The broader Topix index was down 1.38% to finish the trading day at 1,550.71.
On the mainland, the Shanghai Composite was 1.48% lower at 2,850.95, and the smaller, technology-heavy Shenzhen Composite was 1.28% below the waterline at 1,510.72.
South Korea’s Kospi plunged 3.04% to finish at 2,102.01, while the Hang Seng Index in Hong Kong was off 2.39% at 28,311.07.
The blue-chip technology stocks were well into the red in Seoul, with Samsung Electronics down 4.07% and SK Hynix losing 5.35%.
Sentiment took yet another Trump-fuelled hit, after the president told a rally in Florida that Beijing was to blame for a recent breakdown in negotiations with Washington over ongoing trade tensions.
“By the way, you see the tariffs we're doing? Because they broke the deal. They broke the deal,” Trump said.
“So they're flying in, the vice premier tomorrow is flying in - good man - but they broke the deal. They can't do that, so they'll be paying.”
It was a continuation of an ongoing theme this week, which began with a ‘Trump slump’ on Monday after the Donald tweeted that he would raise tariffs on $200bn worth of Chinese goods to 25% from 10% as soon as this Friday.
“By making the threat Trump presumably feels the higher tariffs are necessary for China to reconsider the recent back peddling,” said London Capital Group head of research Jasper Lawler.
“The markets are nervous of the impact that these actions will have on the health of the global economy, just as it is showing tentative signs of stabilising following a period of slower growth.”
Oil prices were mixed as the region went to bed, with Brent crude last up 0.1% at $70.44 per barrel, and West Texas Intermediate down 0.08% at $62.07.
In Australia, the S&P/ASX 200 went against the regional trend to finish up 0.42% at 6,295.30.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was also in the green, rising 0.4% to 10,104.35.
It was led higher by film industry software and services provider Vista Group International, which surged 5.2% to reach a new record price.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.22% at AUD 1.4340, and the Kiwi retreating 0.02% to NZD 1.5208.