Asia report: Markets subdued ahead of trade talks in Beijing

Most markets in Asia were in the negative as they closed on Thursday, as high-level trade talks between the US and China loomed.

In Japan, the Nikkei 225 was down 0.02% at 21,129.71, as the yen strengthened 0.38% against the dollar to last trade at JPY 110.59.

Data released in Tokyo showed a 1.4% rise in gross domestic product for the country in the October-to-December quarter - in line with market expectations.

That was a decent improvement from the revised 2.6% contraction to GDP seen in the third quarter of 2018.

On the mainland, the Shanghai Composite lost 0.05% to 2,719.70, and the smaller, technology-heavy Shenzhen Composite was up 0.66% at 1,398.84.

Fresh data out of China during the day showed stronger-than-expected export activity in January, with dollar-denominated exports ahead 9.1% year-on-year.

A poll of economists conducted by Reuters were expecting a contraction of 3.2%, following on from the 4.4% shrinking seen in December.

Imports, on the other hand, fell by 1.5% in dollar-denominated terms in January, improving significantly from the 7.6% decline a month earlier.

Rather than cheering it too much, analysts were quick to point out the timing of this year's Lunar New Year holiday as likely having an impact.

South Korea’s Kospi went against the regional trend as well, rising 1.11% to 2,225.85, while the Hang Seng Index in Hong Kong was 0.23% lower at 28,432.05.

The moves in Asia came after a positive session on Wall Street overnight, which was on the back of fresh suggestions Washington and Beijing could soon reach an agreement on trade.

Chinese leader Xi Jinping was meeting with US Treasury secretary Steven Mnuchin and Trade Representative Robert Lighthizer in Beijing on Friday.

Oil prices were lower as the region went to bed, with Brent crude last down 0.02% at $63.60 per barrel, and West Texas Intermediate falling 0.79% to $53.48.

In Australia, the S&P/ASX 200 slipped 0.7% to settle at 6,059.40, with the hefty financials subindex closing down 0.8%.

Of the big four banks on the Sydney bourse, Australia and New Zealand Banking Group was down 0.34%, Commonwealth Bank of Australia lost 0.87%, National Australia Bank fell 0.66%, and Westpac Banking Corporation was 0.72% lower.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 0.5% at 9,284.92, led lower by exporters including specialist dairy company A2 Milk, which lost 2.7%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.09% at AUD 1.4092, and the Kiwi advancing 0.62% to NZD 1.4621.