Asia report: Markets mixed as Australia-China relations sour
Asian stock markets finished in a mixed state on Wednesday, as investors digested a fresh batch of data from Japan, amid souring relations between Beijing and Canberra.
In Japan, the Nikkei 225 was up 0.26% at 23,110.61, as the yen strengthened 0.05% against the dollar to last trade at JPY 105.36.
Automation specialist Fanuc was down 0.62%, while fashion firm Fast Retailing rose 0.49% and technology conglomerate SoftBank Group added 3.28%.
The broader Topix index ended its session 0.18% firmer in Tokyo, at 1,613.73.
According to the Ministry of Finance, exports from Japan were down 19.2% year-on-year in July, which was better than the 21% decline anticipated by economists polled by Reuters.
“Exports to Asia are clearly bottoming-out, but those to the EU took a step back last month, plunging by 13%, which more than erased their 5% bounce in June,” said Pantheon Macroeconomics senior Asia economist Miguel Chanco.
“We reckon that it is only a matter of time before the adjusted trade balance returns to the black, especially as the correction in non-oil imports still has further to run to match the earlier and severe weakness in exports.”
On the mainland, the Shanghai Composite was down 1.24% at 3,408.13, and the smaller, technology-heavy Shenzhen Composite lost 1.95% to 2,253.68.
South Korea’s Kospi managed gains of 0.52% to 2,360.54, while the Hang Seng Index in Hong Kong was off 0.74% at 25,178.91.
Morning trade in the special administrative region was suspended, making for a truncated session, amid severe weather.
Both of the blue-chip technology stocks were weaker in Seoul, with Samsung Electronics down 1.03%, and chipmaker SK Hynix losing 3.97%.
Oil prices were lower at the end of the Asian day, with Brent crude last down 0.7% at $45.14 per barrel, and West Texas Intermediate off 1% at $42.46.
In Australia, the S&P/ASX 200 added 0.72% to 6,167.60, as relations between the sunburnt country and China soured.
China’s Ministry of Commerce said on Tuesday that it was launching an anti-dumping investigation into a number of Australian wines.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.83% weaker at 11,751.29, led lower by the country’s major exporters.
Medical device maker Fisher & Paykel Healthcare was down 2.19%, and specialist dairy exporter A2 Milk lost 5.35%.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.34% at AUD 1.3759, and the Kiwi advancing 0.69% to NZD 1.5045.