Asia report: Most markets fall as trade concerns weigh

Most markets in Asia finished in the red on Wednesday, as investors continued to weigh the ongoing concerns about global trade and Washington’s approach to its trading partners.

In Japan, the Nikkei 225 was down 0.53% at 21,638.16, as the yen strengthened 0.22% against the dollar to last trade at JPY 107.64.

Of the major components on the benchmark index, automation specialist Fanuc was down 2.45% and technology conglomerate SoftBank Group fell 1.34%, while fashion firm Fast Retailing added 2.67%.

The broader Topix index was down 0.65% by the end of Tokyo trading, closing at 1,579.54.

On the mainland, the Shanghai Composite was off 0.94% at 3,015.26, and the smaller, technology-heavy Shenzhen Composite slid 1.18% to 1,600.02.

Investors spent much of the session in China digesting the latest Caixin/Markit services purchasing managers' index, which fell to 52.0 for June.

That was the private survey’s lowest reading since February, and was a decent slip from the 52.7 reported in May.

South Korea’s Kospi was 1.23% lower at 2,096.02, while the Hang Seng Index in Hong Kong slipped 0.07% to 28,855.14.

Both of the blue-chip technology stocks were in the red in Seoul, with Samsung Electronics losing 1.84% and chipmaker SK Hynix off 3.22%.

US trade policy was once again the theme of the day, after Washington threatened Europe with $4bn of additional tariffs on EU goods, as part of its ongoing dispute over aircraft subsidies.

That move came just after US president Donald Trump appeared to settle some of his differences with his Chinese counterpart Xi Jinping, agreeing a ceasefire in their trade war at the G20 summit in Japan.

“Asian equities traded in the red on Wednesday, as White House trade advisor Navarro reminded investors that agreeing on a trade deal between the US and China will certainly take time, although the countries moved in the right direction at the latest G20 summit,” said London Capital Group senior market analyst Ipek Ozkardeskaya.

“Navarro also stressed out that allowing ‘small amounts of chip’ sales to Huawei wasn’t a substantial easing on restrictions imposed on the Chinese tech giant.”

Oil prices were higher as the region went to bed, with Brent crude last up 1.11% at $63.10 per barrel, and West Texas Intermediate rising 0.74% to $56.67.

In Australia, the S&P/ASX 200 went against the regional trend, rising 0.49% to settle at 6,685.50.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was also in the green, adding 0.1% to close at 10,544.43.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.41% at AUD 1.4239, and the Kiwi advancing 0.31% to NZD 1.4942.