Asia report: Markets fall on quiet Monday as tariffs come into effect

Markets in Asia finished lower amid rather quiet trading on Monday, as the latest round of tariffs in the ongoing trade war between the US and China came into effect.

In Japan, markets were closed for a public holiday, as were those in South Korea and China.

The yen weakened 0.02% against the dollar to last trade at JPY 112.61.

In Hong Kong, the Hang Seng Index was down 1.62% at 27,499.39.

For those investors not enjoying a long weekend, the ongoing trade spat between Washington and Beijing remained the focus, as tariffs from both countries went into effect just after midday local time in Asia.

The US has imposed a 10% tariff on $200bn of Chinese goods, set to rise to 25% in the new year, which led to Beijing placing retaliatory charges on $60bn of US-made imports.

Friday also saw news that China had cancelled planned trade talks with the Trump administration in the wake of the latest round of tariffs.

“The markets have started the week on the back foot after China pulled out of scheduled talks with the US just hours before the next round of tit for tat tariffs are due to be introduced,” noted analysts at Rakuten Securities Australia.

Oil prices were higher, with Brent crude last up 2.33% at $80.68 per barrel, and West Texas Intermediate rising 1.74% to $72.03.

In Australia, the S&P/ASX 200 slipped 0.12% to 6,186.90, as the hefty financials subindex lost 0.11%.

Of that sector’s components, AMP was down 1.24% and Commonwealth Bank of Australia fell 0.51%.

Rare earths mining firm Lynas was Sydney’s big loser, sliding 18.33% after it confirmed that it was aware of press speculation around a potential review of its Malaysian operations.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was off 0.4% at 9,337.51, led lower by specialist dairy exporter A2 Milk, which was down 5%.

Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.18% at AUD 1.3747 and the Kiwi retreating just 0.02% to JPY 112.61.