Asia report: Markets mixed as trade tensions worsen

In Japan, the Nikkei 225 was almost flat, rising just 0.01% to close at 23,674.93, as the yen strengthened 0.16% against the dollar to last trade at JPY 112.1.

On the mainland, the Shanghai Composite was off 0.06% at 2,729.25, and the smaller, technology-heavy Shenzhen Composite slid 0.22% to close at 1,420.02.

South Korea’s Kospi was ahead 0.65% at 2,323.45, while the Hang Seng Index in Hong Kong rose 0.26% to end the day at 27,477.67.

The blue-chip exporters led the way in Seoul, with Hyundai Motor up 1.98% and Samsung Electronics adding 2.4%.

Asia’s mixed session came after a mixed - though more positive - session on Wall Street overnight, after Beijing confirmed plans that its next round of retaliatory tariffs would be implemented on $60bn worth of US goods on 24 September.

That was in reaction to the Trump administration’s decision to levy another round of punitive tariffs on $200bn of Chinese goods, to begin at 10% and rise to 25% on 1 January.

Prominent Chinese businessman, Jack Ma of Alibaba, also confirmed overnight that his retail conglomerate no longer intended to create a million jobs in the US, citing the trade war between the two nations as being behind his decision.

“The promise was made on the premise of friendly US-China partnership and rational trade relations,” Ma was quoted as saying by Chinese news agency Xinhua.

“That premise no longer exists today, so our promise cannot be fulfilled.”

Oil prices were lower, with Brent crude last down 0.49% at $79.01 per barrel, and West Texas Intermediate losing 0.18% to $70.64.

In Australia, the S&P/ASX 200 fell 0.33% to 6,169.50, with most of Sydney’s subindices ending in the red.

The hefty financial sector was off 0.34%, and the energy subindex fell 0.97%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.2% to 9,360.87, led higher by Tourism Holdings, which surged 4.1% after being upgraded to ‘outperform’ by local investment advisers Forsyth Barr.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.21% at AUD 1.3739 and the Kiwi advancing 0.82% to NZD 1.4993.