Asia report: Most markets finish Monday lower

Markets in Asia were mostly lower on Monday, as oil prices gained sharply on the news four countries had broken off diplomatic relations with Qatar.

Japan’s Nikkei 225 was down 0.03% at 20.170.82, as traders responded to the yen’s strength over the weekend.

It weakened on Monday evening, however, and was last off 0.19% against the greenback at JPY 110.61.

The major exporters - particularly carmakers - were weaker as a result of the stronger yen, with Toyota leading the pack lower, slipping 2.04%.

Toyota also announced it sold its shares in Tesla at the weekend, which it gained as part of an electric car development partnership with the American firm.

On the mainland, the Shanghai Composite was off 0.45% at 3,091.52, while the Shenzhen Composite bucked the trend to finish 0.69% higher at 1,800.93.

The unofficial Caixin services PMI came in during the day at 52.8 for May, improving from 51.5 month-on-month.

South Korea’s Kospi was down 0.13% at 2,368.62, as the Hang Seng Index in Hong Kong lost 0.24% to 25,862.99.

Oil prices were ahead in the Asian session after reports emerged that Bahrain, Egypt, the United Arab Emirates and Saudi Arabia had cut diplomatic relations with Qatar.

Saudi Arabia cited reasons related to terrorism for the severance of relations.

They turned around for the European session, however, with Brent crude last down 0.58% at $49.66 per barrel and West Texas Intermediate losing 0.42% to $47.46.

Australia’s S&P/ASX 200 was down 0.57% at 5,754.87, with the weighty financials subindex dragging the benchmark lower.

Across the Tasman Sea, New Zealand traders were enjoying the last long weekend before winter.

It was a mixed picture for the down under dollars, with the Aussie last ahead 0.4% at AUD 1.3381 against the greenback, while the Kiwi weakened 0.16% to NZD 1.4022.