Asia report: Markets fall as Trump derides recent China talks

Markets in Asia finished lower on Wednesday, after Donald Trump unexpectedly said he was unsatisfied with the most recent round of trade talks with China.

In Japan, the Nikkei 225 was down 1.18% at 22,589.74, as the yen strengthened 0.74% against the dollar to last trade at JPY 110.08.

On the broader Topix, 31 out of 33 subindices were in the red, with the index itself losing 0.68% by the end of the day.

The stronger yen put a dent in major exporters, with Honda Motor off 1.03% and electronic components giant TDK falling 1.96%.

On the mainland, the Shanghai Composite lost 1.4% to 3,169.24, and the smaller, technology-heavy Shenzhen Composite was down 1.1% to 1,834.72.

Coal miners were under the cosh amid reports of a state intervention in the market, with China Shenhua down 6.95% in Shanghai trading.

South Korea’s Kospi was the odd one out, managing gains of 0.26% to 2,471.91, while the Hang Seng Index in Hong Kong slid 1.82% to 30,665.64.

Gains in blue-chip technology plays offset losses elsewhere in Seoul, with Samsung Electronics ahead 3.6% and chipmaker SK Hynix surging 6.96%.

The losses came as sentiment dipped, following the US president’s comments that he was “not satisfied” with bilateral trade negotiations between the US and China last week.

He did strike a minor conciliatory note, however, describing them as “a start” to solving Washington’s trade imbalance with Beijing.

Comments from the capitol earlier in the week had suggested the talks were relatively successful.

Oil prices were lower, with Brent crude last down 0.65% at $79.02 per barrel and West Texas Intermediate falling 0.47% to $71.86.

In Australia, the S&P/ASX 200 fell 0.16% to 6,032.24, with Santos tumbling 8.39% after it rejected a takeover bid from Harbor Energy.

The Santos board said Harbor’s offer was not representative of Santos’ full value, and confirmed it had formally ended discussions with Harbor.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.7% lower at 8,553.23, led lower by the dairy industry after the country’s Fonterra Cooperative - one of the world’s largest milk groups - slashed its milk price and dividend forecasts.

Specialist dairy products exporter A2 Milk was down 4.4%, while units in the Fonterra Shareholders’ Fund - an instrument allowing farmers to trade in their membership of the cooperative - slid 6.8%.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.41% at AUD 1.3259 and the Kiwi retreating 0.58% to NZD 1.4503.