Asia report: Markets stage recoveries as trade concerns linger

Markets in Asia finished broadly firmer on Wednesday, as bourses across the region rebounded from the sharp losses seen on Tuesday when investors reacted to the latest negative developments in the trade spat between Washington and Beijing.

In Japan, the Nikkei 225 was ahead 1.24% at 22,555.43, as the yen strengthened 0.02% against the dollar to last trade at JPY 110.04.

Materials stocks and banking plays were lower in Tokyo, while consumer brands and technology shares were firmer.

On the mainland, the Shanghai Composite was 0.31% higher at 2,916.74, and the smaller, technology-heavy Shenzhen Composite improved 1.16% to 1,612.60.

South Korea’s Kospi added 1.02% to 2,363.91, while the Hang Seng Index in Hong Kong was up 0.77% at 29,696.17.

Among the winners of the day in Seoul were steel producer Posco, which rose 0.74%, and chipmaker SK Hynix, which surged 4.4%.

Shares in floundering Chinese mobile technology firm ZTE surged 20% in Hong Kong, seeing it claw back some of the declines it notched on Tuesday.

The company had almost collapsed earlier in the year after the US Department of Justice banned American companies from supplying it, citing national security breaches.

It appeared president Trump was going to save the firm this month after he put forward a rescue package amid negotiations with China, though those hopes were dashed on Tuesday after the US Senate passed a defence bill that included a block of the bailout.

ZTE said on Wednesday that the bill was not yet law, as it still needed reconciliation with the version passed by the House of Representatives.

Despite the improved sentiment in the region, concerns of a trade war between the US and China continued to linger after Donald Trump asked officials on Monday to identify $200bn of Chinese goods that could be subjected to yet more tariffs.

In response, Chinese officials said it would implement further retaliatory measures if Washington went ahead with its latest unprecedented action.

Oil prices were lower, with Brent crude last down 0.2% at $74.93 per barrel and West Texas Intermediate off 0.09% to $64.84.

In Australia, the S&P/ASX 200 rose 1.16% to 6,172.60, led higher by the hefty financials subindex which was uo 2.27%, with oil plays not far behind.

Former incumbent telecoms provider Telstra was down 4.81% after it announced plans to cut 8,000 staff and contractors.

It also said it was going to spin out its fixed line infrastructure business into an arms-length subsidiary named Telstra InfraCo.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was ahead 0.5% at 8,905.79, led higher by commercial developer Precinct Properties, which added 2.7%.

The Australasian banks were also higher in Wellington, paralleling their Sydney performance, with Australian and New Zealand Banking Group up 2.4% and Westpac Banking Corporation ahead 2.6% in New Zealand trading.

It was a mixed picture for the down under dollars against the greenback, with the Aussie last 0.14% stronger AUD 1.3529, while the Kiwi weakened 0.27% to NZD 1.4523.