Asia report: Markets remain muted as investors await US tariffs
Markets in Asia finished mixed on Tuesday, as once again trade concerns between a belligerent Washington and a retaliatory Beijing weighed on investor sentiment.
AUD/USD
$0.6416
23:00 19/04/24
GBP/NZD
NZD2.1007
23:53 19/04/24
Hang Seng
16,224.14
10:21 19/04/24
Nikkei 225
37,068.35
09:44 19/04/24
USD/JPY
¥154.6345
23:58 19/04/24
In Japan, the Nikkei 225 was down 0.12% at 21,785.54, as the yen strengthened 0.15% against the dollar to last trade at JPY 110.73.
Most sectors were on the back foot on the Topix, although oil plays and airlines remained in the green.
On the mainland, the Shanghai Composite added 0.39% to 2,786.35, and the smaller, technology-heavy Shenzhen Composite rose 0.76% to 1,594.24.
South Korea’s Kospi eked out gains of 0.05% to 2,272.76, while the Hang Seng Index in Hong Kong slid 1.41% to 28,545.57.
Blue-chip technology stocks and steel producers were a mixed bag in Seoul, with Posco slipping 0.32% while Samsung Electronics advanced 1.32%.
Investor sentiment remained muted as the 6 July implementation date for US tariffs on $34bn worth of Chinese goods in 800 product categories approached.
Beijing has vowed to put in place its own retaliatory tariffs on an equivalent value of American goods.
“While we still think that a full-blown trade war is unlikely, the harsh rhetoric and punitive measures have reached a point that warrants serious consideration of such eventualities,” noted DBS Bank’s chief economist Taimur Baig.
Washington also remained locked in trade disputes with its its historic allies Canada and the European Union, with the EU maintaining it will implement tariffs of up to $300bn on US goods if the Trump administration goes ahead with its plans to tariff European cars.
Oil prices were higher, with Brent crude last up 1.34% at $78.35 per barrel and West Texas Intermediate rising 1.55% to $75.10.
In Australia, the S&P/ASX 200 was up 0.52% at 6,210.20, as the Reserve Bank of Australia stood pat on interest rates at 1.5% in a widely-anticipated move.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 surged 1.2% to break a new record and breach the 9,000 level for the first time, closing at 9,053.59.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.63% at AUD 1.3540, and the Kiwi advancing 0.27% to NZD 1.4851.