Asia report: Markets mixed after more Trump bluster

Markets in Asia finished mixed on Monday, with Japanese shares taking a tumble on the back of a stronger yen.

In Japan, the Nikkei 225 was down 1.33% at 22,396.99, as the yen strengthened 0.31% against the dollar to last trade at JPY 111.07.

Strength in the safe-haven currency came after Reuters reported that the Bank of Japan was involved in what it described as “unusually active discussions” before its July monetary policy decision.

That sent major exporters lower in Tokyo, with carmakers down 1.18% and the electrical appliance sector off 0.98%.

Retailers were also under pressure, with clothing conglomerate Fast Retailing falling 5.72%, while financial plays gained, led by Mitsubishi UFJ, which added 3.64%.

On the mainland, the Shanghai Composite added 1.07% to 2,859.52, and the smaller, technology-heavy Shenzhen Composite was up 0.52% at 1,601.69.

Industrial stocks and banks offset losses in the Chinese healthcare sector to keep both bourses above the waterline during the session.

South Korea’s Kospi was off 0.87% at 2,269.31, while the Hang Seng Index in Hong Kong eked out gains of 0.11% to settle at 28,256.12.

Seoul’s market was dragged by declines in the blue-chip technology stocks, with Samsung Electronics down 2% and SK Hynix sliding 7.05%.

Currencies across the region saw some strength against the dollar during the session, after Donald Trump decided to double down on his criticism of the Federal Reserve and monetary policy globally after his shock statements over interest rates last week.

“China, the European Union and others have been manipulating their currencies and interest rates lower,” the president said using his favourite medium - Twitter.

He claimed that the alleged manipulation, combined with rising interest rates in the US, was leading to the loss of his country’s competitive edge.

Oil prices were higher, with Brent crude last up 1.51% at $74.19 per barrel, and West Texas Intermediate adding 1.13% to $69.04.

In Australia, the S&P/ASX 200 was down 0.93% at 6,227.60, as all sectors apart from the energy subindex finished the day in the red in Sydney.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 0.9% to 8,872.56, led lower by specialty dairy exporter A2 Milk, which was off 2.8%.

The down under dollars were mixed on the greenback after a day of strength, with the Aussie last 0.16% weaker at AUD 1.3502, and the Kiwi 0.02% stronger at NZD 1.4681.