Asia report: Most markets higher as US-China tensions linger

Most markets in Asia closed higher on Friday, with the exception of equities in Japan, as tensions between Washington and Beijing continued to remain at the top of the agenda.

In Japan, the Nikkei 225 was down 0.32% at 22,696.42, as the yen strengthened 0.13% against the dollar to last trade at JPY 107.13.

Technology conglomerate SoftBank Group managed to close 0.19% above the waterline, while among the benchmark’s other major components, automation specialist Fanuc was down 0.56% and fashion firm Fast Retailing was 1.29% weaker.

The broader Topix index slipped 0.33% by the end of trading in Tokyo, closing at 1,573.85.

On the mainland, the Shanghai Composite managed gains of 0.13% to 3,214.13, and the smaller, technology-heavy Shenzhen Composite was 0.69% firmer at 2,158.94.

South Korea’s Kospi was 0.8% higher at 2,201.19, while the Hang Seng Index in Hong Kong added 0.47% to 25,089.17.

Both of the blue-chip technology stocks closed higher in Seoul, with Samsung Electronics up 1.12% and SK Hynix adding 0.24%.

Investors spent the early parts of the session digesting the latest jobless claims data out of the United States, released overnight.

Initial jobless claims came in at 1.3 million for the week to 11 July, according to the Department of Labor, which was above the expected 1.25 million figure according to a Dow Jones poll of economists.

“While yesterday’s US data was predominantly better than expected, equity markets in general had a much softer tone,” said CMC Markets chief market analyst Michael Hewson.

Continuing geopolitical tensions between Washington and China were also evident, after reports on Thursday that the Trump administration was considering a travel ban on all members of the Chinese Communist Party, as well as their families.

Oil prices were lower as the region entered the weekend, with Brent crude last down 0.72% at $43.06 per barrel, and West Texas Intermediate off 0.69% at $40.47.

In Australia, the S&P/ASX 200 rose 0.38% to settle at 6,033.60, with the materials subindex rising 0.83% and the metals and mining sector putting in gains of 0.77%.

BHP shares were ahead 0.42% in Sydney, while Fortescue Metals added 1.74% and Rio Tinto rose 0.61%.

“Australian miner Rio Tinto this morning announced that production in the second quarter saw an increase in iron ore shipments, as it took advantage of higher prices, with shipments up 19% and production rising 7%, on the back of rising Chinese demand,” Michael Hewson noted.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was ahead 0.69% at 11,584.05, led higher by property stocks, with local commentators citing the appeal of tangible assets as behind that rush.

Property for Industry, which owns manufacturing property assets, was ahead 4.1%, while Vital Healthcare Property Trust was 2.7% firmer in Wellington.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.22% at AUD 1.4312, and the Kiwi advancing 0.19% to NZD 1.5269.