Asia report: Most markets weaker as US-China trade tensions tighten
Most markets in Asia ended their Monday sessions in the red, as investors started their week digesting tightening trade tensions between the United States and China.
AUD/USD
$0.6483
18:10 23/04/24
GBP/NZD
NZD2.0955
18:09 23/04/24
Hang Seng
16,828.93
10:21 23/04/24
Nikkei 225
37,552.16
09:44 23/04/24
USD/JPY
¥154.7830
18:10 23/04/24
In Japan, the Nikkei 225 was down 0.75% at 22,680.33, as the yen strengthened 0.19% against the dollar to last trade at JPY 110.45.
Shipping firms were the biggest losers in Tokyo, with that subindex down 3.93% on the Topix, while oil plays lost 3.71% and steel producers were off 1.73%.
On the mainland, markets were closed for a public holiday, as were those in Hong Kong.
South Korea’s Kospi was 1.16% lower at 2,376.24.
Blue-chip technology plays were among the big decliners in Seoul, with Samsung Electronics down 2.2% and SK Hynix losing 3.45%.
Carmakers were in the green, however, with Hyundai Motor ending the day up 0.75%.
Like clockwork, trans-Pacific trade tensions were once again at the top of the investor agenda on Monday morning, after Washington announced a 25% punitive tariff on a list of 818 Chinese goods last week.
The measures, understood to be affecting around $34bn of trade between the US and China, was set down to be implemented on 6 July.
Further tariffs on another 284 products, worth $16bn, were to be reviewed before being implemented.
“Although the initial $34bn is unlikely to have material impact on both economies, it does pose risks to the global recovery and sentiment,” noted OCBC Bank head of greater China research Tommy Xie.
In response, Beijing announced a 25% retaliatory tariff on a number of American goods, including electric vehicle technology and soy beans.
Those measures, worth $34bn, would also be applied on 6 July, with Chinese officials also reviewing another list of items worth $16bn in parallel to the US.
Oil prices rose as the region went to bed, having spent the weekend in a weaker position, with Brent crude last up 0.98% at $74.17 per barrel and West Texas Intermediate rising 0.18% to $65.18.
In Australia, the S&P/ASX 200 managed to add 0.17% to end its session at 6,104.10.
A poor performance from the energy and materials sectors in Sydney was offset by gains in the hefty financials subindex, as all of the big four banks saw their share prices rise.
The major miners were dragged by Rio Tinto, which lost 1.97% after ir reiterated its 2018 iron ore shipment guidance to between 330 million adn 340 million tonnes.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 slipped 0.02% to end the day at 8,974.23 on mixed trading.
Energy generator and retailer Mercury rose 3.3% to lead Wellington at the close, with New Zealand-listed shares in Australia and New Zealand Banking Group following with a 1.9% gain.
The down under dollars were mixed against the greenback, with the Aussie last 0.02% weaker at AUD 1.3442, while the Kiwi strengthened 0.15% to NZD 1.4387.