Asia report: Markets mostly lower as Trump mulls even more China tariffs

Markets in Asia finished mostly lower on Friday, after a negative session on Wall Street overnight and amid reports US president Donald Trump was keen to pile even more tariffs on the already-burdened portfolio of imports from China.

In Japan, the Nikkei 225 slipped 0.02% to finish at 22,865.15, as the yen strengthened 0.18% against the dollar to last trade at JPY 110.78.

On the mainland, the Shanghai Composite was down 0.46% at 2,725.25, and the smaller, technology-heavy Shenzhen Composite lost 1.08% to 1,451.38.

South Korea’s Kospi managed gains of 0.67% to end the day at 2,322.88, while the Hang Seng Index in Hong Kong slid 0.98% to 27,888.55.

The region-bucking performance in Seoul was led by blue-chip technology titan Samsung Electronics, which added 1.68% by end-of-play.

Sentiment began negatively in Asia on Friday, after US bourses ended their four-day winning streak overnight.

Reports also emerged overnight that Trump had told staffers he was supportive of plans for punitive tariffs on a further $200bn of goods imported from China.

According to Bloomberg, Trump - while supportive of such a move - had not made a final decision on the matter as yet.

“Investors should take the escalation in rising trade tensions seriously,” noted JPMorgan Asset Management global market strategist Kerry Craig.

Press officials at the White House had reportedly declined to make any official comments, however.

Oil prices were lower, with Brent crude last down 0.8% to $77.15 per barrel and West Texas Intermediate losing 0.79% to $69.70.

In Australia, the S&P/ASX 200 was down 0.51% at 6,319.50, as the telecoms subindex gave up Thursday’s gains to end down 3.85%.

The solid performance from the sector yesterday was fuelled by confirmed proposals for a merger between local broadband retailer TPG Telecom and mobile network operator Vodafone Hutchison Australia.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 0.3% to 9,313.20, led lower once again by subscription broadcaster Sky, which was down 6.5% to close at its lowest level since May.

The company - no relation to its London-listed namesake - wrote down its value by NZD 360m at the end of its financial year last week, leading it to an annual loss of NZD 240.7m.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.51% at AUD 1.3836 and the Kiwi retreating 0.35% to NZD 1.5072.