Asia report: Markets mixed after Monday's Trump slump

In Japan, the Nikkei 225 was down 1.51% at 21,923.72 as traders returned for the first session after an extended week-long holiday, celebrating the handing over of power to a new emperor.

The yen was last trading 0.13% stronger against the dollar at JPY 110.62.

Of the major components on the Tokyo benchmark, automation specialist Fanuc was down 3.23%, fashion group Fast Retailing was off 1.49%, and technology conglomerate SoftBank Group was 0.78% weaker.

The broader Topix index declined 1.12% to end the session at 1,599.84.

On the mainland, the Shanghai Composite bounced 0.69% to 2,926.39, and the smaller, technology-heavy Shenzhen Composite rose 1.62% to 1,540.31.

Stocks in China had plunged on Monday, with the Shanghai benchmark losing more than 5% following comments from the US president over the weekend.

South Korea’s Kospi was off 0.88% at 2,176.99, while the Hang Seng Index in Hong Kong was 0.52% higher at 29,363.02.

The blue-chip technology stocks were in the red in Seoul, with Samsung Electronics down 0.99% and chipmaker SK Hynix 0.62% weaker.

US markets managed a decent performance by the end of the session on Wall Street overnight, after reports that a delegation from China would still travel to the US for continued trade negotiations this week.

The status of that trip was thrown into doubt over the weekend, after a tweet from Donald Trump on Sunday which said the existing 10% tariffs on $200bn worth of goods from China would rise to 25% on Friday.

He also threatened to slap 25% tariffs on another $325bn of goods from the People’s Republic “shortly”.

“Asian markets picked up off five-week lows … as investors continue to focus on president Trump’s latest threat to raise tariffs on Chinese goods,” said London Capital Group head of research Jasper Lawler.

“Following Trump’s tweet on Sunday, markets remain fragile.

“The overriding concern here is that Trump has single handedly halted the recent recovery in risk appetite by potentially derailing trade talks.”

Oil prices were lower as the region went to bed, with Brent crude last down 1.27% at $70.35 per barrel, and West Texas Intermediate off 1.01% to $61.63.

In Australia, the S&P/ASX 200 managed gains of 0.19% to 6,295.70, as the Reserve Bank of Australia satiated market expectations by keeping interest rates on hold.

The central bank stood pat on its 1.5% official cash rate, which has not moved since the middle of 2016.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.7% at 10,027.39, led higher by a group of utility firms as investors clambered for reliable dividends ahead of a possible interest rate cut from the country’s central bank on Wednesday.

Broadband infrastructure operator Chorus was up 2.5%, public transport and airports company Infratil added 2.7%, and electricity generator and retailer Meridian was 1.8% higher.

The down under dollars were a mixed picture, with the Aussie last 0.34% stronger against the greenback at AUD 1.4247, while the Kiwi weakened 0.25% to NZD 1.5164.