Asia report: Most markets lower as Korea tensions rise again

In Japan, the Nikkei 225 was down 0.33% at 20,330.19, as they yen weakened 0.07% against the dollar to last trade at JPY 111.81.

Toshiba was once again doing very little to surprise investors, with reports its $18bn sale of the memory chip unit to a consortium led by Bain Capital was still not signed.

It’s understood the ailing technology conglomerate had told its banks on Monday that US tech giant Apple, which is a part of the acquiring group, had not agreed to some of the transaction’s terms.

Shares in Toshiba were down 0.66% by the end of the session.

On the mainland, the Shanghai Composite was up 0.07% at 3,343.83, and the smaller, technology-heavy Shenzhen Composite was near flat, rising 0.01% to 1,964.04.

South Korea’s Kospi lost 0.26% to 2,374.32, while the Hang Seng Index in Hong Kong added 0.05% to close at 27,513.01.

Blue chip technology stocks were on the back foot in Seoul after a blue Monday for techs on Wall Street, with LG Electronics down 2.97%, Samsung Electronics off 3.66% and SK Hynix 4.87% softer.

Geopolitical tensions on the Korean peninsula were once again at the top of the agenda, after the North Korean foreign minister claimed the United States had declared war on the belligerent state.

Ri Yong Ho claimed that the false development meant Pyongyang had the power to now shoot down US warplanes, even though the White House clarified the situation by confirming no such war had been declared.

Oil prices were lower during Asian trading, with Brent crude last down 0.63% at $58.65 per barrel and West Texas Intermediate losing 0.44% to $51.99.

In Australia, the S&P/ASX 200 was off 0.22% at 5,670.98, with solid 1.91% gains for the energy sector offset by losses elsewhere, including healthcare and technology, which fell 0.75% and 0.8% respectively.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 added 0.2% as volumes returned to more normal levels, after an election on Saturday which has left the country without a government.

CBL Corporation led the benchmark, adding 6.3%, while subscription broadcaster Sky - unrelated to its London-listed namesake - was ahead 3.8%.

Preliminary results from Saturday’s general election left both the National-Act right bloc and the Labour-Green left with minorities in the country’s House of Representatives, leaving the populist New Zealand First party to negotiate its way into either side to form a government.

Those negotiations are expected to take weeks, although New Zealand First leader Winston Peters has indicated he wanted to conclude them before 12 October, when the final vote count is made official.

The down under dollars were both weaker on the greenback, with the Aussie last behind 0.48% at AUD 1.2661 and the Kiwi retreating 0.76% to NZD 1.3870.