Asia report: Markets mixed as Washington exempts Korea from steel tariffs

In Japan, the Nikkei 225 was up 0.72% at 20,766.10, as the yen weakened 0.35% against the dollar to last trade at JPY 105.11.

Major exporters were mixed in Tokyo after the weekend’s movements in the yen, with Canon up 0.16%, Honda ahead 0.46%, Sony down 0.33% and Toyota 0.59% above the line.

On the mainland, the Shanghai Composite was down 0.6% at 3,133.92, and the smaller, technology-heavy Shenzhen Composite managed to rise 1.43% to 1,790.35.

South Korea’s Kospi moved ahead 0.84% to 2,437.08, while the Hang Seng Index in Hong Kong was 0.79% above the waterline at 30,548.77.

Sentiment was somewhat improved in the region on Monday, after ongoing concerns about a Trump-fuelled trade war caused a global stock slump last week.

Reported late in the session on Monday suggested the US administration had agreed to exempt South Korea from steel tariffs, instead choosing to impose a quota.

In return for the move. Seoul reportedly agreed to improve access to US carmakers under the US-Korea Free Trade Agreement.

Beijing added fuel to the fire late last week too, with Chinese lawmakers saying they were looking at targeting 128 US imports worth $3bn in response to President Trump’s targeting of Chinese imports to the US.

“Whether this is the sole cause of latest risk market ructions is debatable,” noted National Australia Bank head of foreign exchange strategy Ray Attrill, adding that tightening geopolitical tension could also be to blame for the recent global sell-off, citing the hiring of John Bolton as Trump’s new national security advisor in the US as well.

“This has heightened concerns that Trump will formally repudiate the 2015 nuclear deal with Iran that Bolton is on record as saying was a mistake.”

Oil prices were down as the region went to bed, with Brent crude last off 0.06% at $70.41 per barrel and West Texas Intermediate falling 0.23% to $65.73.

In Australia, the S&P/ASX 200 slipped 0.52% to settle at 5,790.50, with the hefty financials subindex finished the day down 0.84%.

Of the major banking plays in Sydney, Australia and New Zealand Banking Group was down 0.65%, Commonwealth Bank of Australia lost 1.09%, National Australia Bank slid 0.66% and Westpac Banking Corporation was 0.62% lower.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 0.97% at 8,432.41, led lower by telecoms retailer and former state monopoly Spark, which lost 3.1%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.49% at AUD 1.2927 and the Kiwi advancing 0.69% to NZD 1.3723.