Asia report: Markets mixed as Washington and Beijing continue to talk trade
Markets in Asia finished in a mixed state on Wednesday, as investors sifted through the latest developments in the ongoing trade dispute between Washington and Beijing.
AUD/USD
$0.6533
23:03 26/04/24
GBP/NZD
NZD2.1025
23:15 26/04/24
Hang Seng
17,651.15
10:20 26/04/24
Nikkei 225
37,934.76
09:44 26/04/24
USD/JPY
¥158.0550
23:09 26/04/24
In Japan, the Nikkei 225 was ahead 0.86% at 22,746.70, as the yen weakened 0.03% against the dollar to last trade at JPY 111.89.
Ongoing weakness in the yen was behind many of the gains on Tokyo’s benchmark, with steel producers leading the winners, followed by the major exporters - primarily the carmakers - and financial plays.
JFE Holdings rose 10.37% by end-of-play.
On the mainland, the Shanghai Composite was down 1.81% tat 2,824.21, and the smaller, technology-heavy Shenzhen Composite lost 1.72% to 1,549.28.
Moves came in China after reports US Treasury secretary Steven Mnuchin and Chinese vice-premier Liu He were discussing the resumption of trade negotiations, to avoid the prospect of an all-out trade war.
According to CNBC, Mnuchin had said last week that “quiet conversations” were still being held with Beijing.
There were also reports that the White House wanted implement a 25% tariff on $200bn of Chinese goods -a significantly larger charge than the 10% mentioned by the Trump administration earlier in the month.
“Markets took some relief on news that trade talks between the US and China could be back on the menu as the US gears up to impose tariffs on another $16bn of Chinese imports,” noted ANZ head of foreign exchange research Daniel Been, saying that was a move that would likely be met with an equal-sized retaliatory measure by China.
South Korea’s Kospi managed gains of 0.51% to 2,307.07, while the Hang Seng Index in Hong Kong was 0.85% lower at 28,340.74.
The technology sector was a mixed bag in Seoul, with a number of Apple suppliers initially gaining on the back of a solid earnings report from the US electronics giant, before giving those up.
LG Innotek had risen more than 2% early in the day, before finishing 0.31% below the waterline.
Oil prices were lower, with Brent crude last down 1.48% to $73.13 per barrel, and West Texas Intermediate off 1.24% to $67.92.
In Australia, the S&P/ASX 200 slipped 0.07% to 6,275.70, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 0.7% at 8,859.92.
Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.18% at AUD 1.3487, and the Kiwi retreating 0.23% to NZD 1.4698.