Asia report: Markets rebound from trade war-fuelled losses

In Japan, the Nikkei 225 was up 0.58% at 21,188.56, as the yen strengthened 0.36% against the dollar to last trade at JPY 109.21.

Of the major components on the Tokyo benchmark, automation specialist Fanuc was up 1% and technology conglomerate SoftBank Group added 3.2%, while fashion firm Fast Retailing was off 0.34%.

Carmaker Nissan Motor plunged 6.47%, after the firm released 2018 earnings that were at their lowest levels in more than a decade.

The broader Topix index was ahead 0.6% to end the day at 1,544.15.

On the mainland, the Shanghai Composite surged 1.91% to 2,938.68, and the smaller, technology-heavy Shenzhen Composite jumped 2.33% to 1,577.92.

In fresh data being reported out of China, the country’s industrial growth came in below forecasts for April, with industrial production increasing 5.4% year-on-year.

That was wide of the 6.5% mark predicted in a poll conducted by Reuters.

Retail sales growth were also disappointing, coming in at their slowest pace in 16 years, as concerns over the trade spat with the US continued to hang in the air.

“These figures show that the Chinese economy is losing steam,” said London Capital Group head of research Jasper Lawler.

“Given the spotlight on the health of the Chinese economy amid recent US trade tariff hikes, these figures could have been received very differently.

“The Shanghai Composite closed 1% higher on the assumption that Beijing will continue supporting the weakening economy.”

South Korea’s Kospi was up 0.53% at 2,092.78, while the Hang Seng Index in Hong Kong was ahead 0.52% at 28,268.71.

The blue-chip technology stocks were both in the red in Seoul, with Samsung Electronics ending the session down 0.23% and SK Hynix slipping 0.13%.

LG Chem was another winner on the peninsula, adding 2.71%.

Markets in the US were also in the green overnight, giving sentiment a boost in Asia early in the session, after some sharp losses across the globe early in the week.

On Monday, Beijing confirmed its plans to retaliate to Washington’s recent surprise tariff hike with increased charges in $60bn worth of US imports, starting from 1 June.

The White House had hiked its punitive tariffs on $250bn worth of Chinese imports to 25% from 10% last Friday.

Oil prices were lower as the region went to bed, with Brent crude last down 0.64% at $70.79, and West Texas Intermediate off 1.15% at $61.08.

In Australia, the S&P/ASX 200 managed gains of 0.71% to finish at 6,284.20, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.6% higher at 10,131.58.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.36% at AUD 1.4453, and the Kiwi retreating 0.31% to NZD 1.5255.