Asia report: Markets mixed as Trump stokes tensions with China
Markets in Asia finished in a mixed state on Monday, as investors watched rising political tensions between Washington and Beijing over China’s initial handling of the Covid-19 coronavirus outbreak.
In Japan, trading was closed for a public holiday, as the yen strengthened 0.03% against the dollar to last trade at JPY 106.88.
Bourses were also closed in mainland China as investors there took the day off as well.
South Korea’s Kospi was down 2.68% at 1,895.37, while the Hang Seng Index in Hong Kong was 4.81% weaker at 23,613.80.
Both of the blue-chip technology stocks were weaker in Seoul, with Samsung Electronics down 3% and chipmaker SK Hynix 3.23% softer.
Political tensions were at the forefront on Monday, after US president Donald Trump said on Sunday that he thought a “mistake” in China was the reason the Covid-19 virus spread to pandemic levels.
That came after the US Office of the Director of National Intelligence said on Thursday that it had determined the virus was not man-made, but it was still looking into whether the outbreak was caused by an “accident at a laboratory” in the city of Wuhan.
A report from the Associated Press also said that, according to US intelligence, authorities in China hid the severity of the virus outbreak from the rest of the world initially, in a bid to hoard medical equipment and supplies.
Also on Sunday, Trump said he was confident the world would see a vaccine for Covid-19 by the end of the year, even though public health officials and experts have said it could take up to 18 months in a best-case scenario.
“We are very confident that we are going to have a vaccine at the end of the year, by the end of the year,” the president said.
“Having only recently signed a trade deal with China, just prior to the outbreak of the current pandemic, President Trump caught the markets a little off guard by comments that raised the prospect of raising new tariffs against them on the premise that the virus was their fault, and that they sought to spread it on purpose, or at the very least did little to halt its spread,” said CMC Markets analyst Michael Hewson.
Oil prices were weaker as the region went to bed, with Brent crude last down 0.64% at $26.27 per barrel, and West Texas Intermediate off 1.01% at $19.58.
In Australia, the S&P/ASX 200 added 1.41% to 5,319.80, with Westpac Banking Corporation rising 2.8% even after announcing a fall in first half earnings and a deferral of its dividend.
Of the country’s other major banks, Australia and New Zealand Banking Group was up 2.54%, Commonwealth Bank of Australia added 1.77%, and National Australia Bank rose 1.98%.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 managed gains of 0.26% to settle at 10,475.98, led higher by specialist dairy exporter A2 Milk, which was ahead 4%.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.17% at AUD 1.5606, and the Kiwi retreating 0.53% to NZD 1.6584.