Asia report: Markets mixed as trade tensions tighten
Markets in Asia finished in a mixed state on Friday, as investors continued to weigh up trade concerns amid ongoing tension between Washington and Beijing.
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 eked out gains of 0.06% to close at 22,525.18, as the yen strengthened 0.1% against the dollar to last trade at JPY 111.55.
The Tokyo benchmark was led higher by carmakers, energy plays and machinery firms, with the auto industry led higher by Suzuki Motor, which surged 8.55% on the back of a solid earnings report.
Japan’s broader Topix index was under pressure, ending the day down 0.54% as more than three quarters of its sectors fell into the red.
On the mainland, the Shanghai Composite was down 0.97% 2,741.08, and the smaller, technology-heavy Shenzhen Composite slid 1.72% to 1,486.06.
The offshore yuan was rising sharply towards the end of the session, after the People’s Bank of China said it would move its foreign exchange risk reserve requirement to 20%, up from zero.
South Korea’s Kospi was 0.77% higher at 2,287.68, while the Hang Seng Index in Hong Kong was off 0.14% at 27,676.32.
Seoul’s gains were boosted by manufacturers, retailers and technology firms, with blue-chip electronics giant Samsung Electronics managing gains of 0.44%.
Caution was the theme of the day once again, as trade tensions between the US and China continued to tighten.
Reports earlier in the week that US president Donald Trump was asking his staff to prepare tariffs of 25% on Chinese goods worth $200bn were met with a response from Beijing on Thursday.
Chinese officials said they were “fully prepared” to defend their turf in the interests of free trade.
“Any hope of US-China trade dispute resolution is predicated on the ability to walk in each other's shoes, not running one another down,” noted Mizuho Bank head of economics and strategy Vishnu Varathan.
“And that appears … too much to hope for.”
Oil prices were mixed, with Brent crude last up 0.01% at $73.46 per barrel, while West Texas Intermediate lost 0.19% to $68.83.
In Australia, the S&P/ASX 200 slipped 0.1% to settle at 6,234.80, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.2% at 8,864.52.
The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.35% at AUD 1.3536, and the Kiwi advancing 0.04% to NZD 1.4810.