Asia report: Markets finish lower as Trump locks the gate
Markets in Asia finished lower on Monday, after a wild political weekend in the US as President Trump’s hugely controversial immigration policy put serious pressure on the greenback.
In Japan, the Nikkei 225 was down 0.51% at 19,368.85, with fresh domestic data showing Japan retail sales rose 0.6% in December compared to the prior year.
That disappointed investors, who were hoping for an increase of around 1.3%.
The yen was stronger on the greenback, and was last ahead 0.37% at JPY 114.67 per $1.
Technology firm Toshiba was down 3.69% after reports emerged that a number of trust banks were preparing to file lawsuits against the company over financial mismanagement.
Local media also claimed chairman Shigenori Shiga, as well as president of Toshiba’s beleaguered Westinghouse nuclear development subsidiary Daniel Roderick, were both set to resign.
The Bank of Japan began its two-day policy meeting for January on Monday, with local markets expecting to stand pat on policy amid fears it was looking to tone down its unprecedented stimulus programme.
Markets in China, Hong Kong, Singapore, South Korea and Taiwan remained closed for public holidays on Monday.
A number of countries were openly criticising Trump’s executive order placing a flat ban on citizens of seven primarily Muslim countries from entering the US.
Reports were numerous over the weekend of US residents and dual citizens of other countries being refused entry to the US because of their nationalities.
Attorneys-General from 15 states and the District of Columbia openly promised to battle what they called an unconstitutional order, although Trump defended the move on Sunday night, denying it was about religion.
“Whether the markets start to price in a stronger Trump risk premium is yet to be seen, but the S&P 500 rallying 1% last week in the face of various protectionist measures suggest this premium is not yet in the market,” noted IG chief market strategist Chris Weston.
Oil prices were mixed, with Brent crude last flat at $55.52 per barrel and West Texas Intermediate adding 0.3% to $53.33.
In Australia, the S&P.ASX 200 was down 0.92% at 5,661.52, with broad losses across almost all subindexes - gold was the exception, as it climbed 1.2%.
Gold specialist Newcrest Mining saw its shares rise 1.27% after it released solid production results for the December quarter, showing it was on track to meet guidance.
Alacer Gold was also up, improving 2.58%, while Evolution Mining added 1.42%.
Regional insurance group QBE Insurance was 0.15% firmer after it emerged it had been approached by Allianz over a possible takeover.
Details were scarce, with no acquisition price yet proposed.
In New Zealand, the S&P/NZX 50 fell 0.7% to 7,085.56, led lower by broadband infrastructure owner Chorus, which lost 3.7%.
The down under dollars were both weaker, with the Aussie last off 0.1% at AUD 1.3258 to the greenback and the Kiwi slipping 0.15% to NZD 1.38 per $1.