Asia report: Markets finish mixed as trade tops agenda again

Markets in Asia finished in a mixed state on Wednesday, with bourses in Hong Kong and Japan following Wall Street’s lead northwards as a bumper earnings season continued apace stateside.

In Japan, the Nikkei 225 was up 0.46% at 22,614.25, as the yen strengthened 0.16% against the dollar to last trade at JPY 111.02.

Tokyo was led higher by steel producers and other plays in the metals sector, with JFE Holdings up 2.98% and Nisshin Steel adding 2.21%.

Mitsubishi Motors slid 2.91%, however, aid profit-taking after the carmaker blasted expectations for earnings on Tuesday.

On the mainland, the Shanghai Composite slipped 0.04% to 2,904.37, and the smaller, technology-heavy Shenzhen Composite was off 0.07% at 1,624.72.

The losses in China broke a three-session winning streak for Shanghai, which was on a roll as investors reacted to news that Beijing would pursue more “vigorous” fiscal policy, including the prospect of corporate tax cuts.

“As compared to Beijing’s actions in 2008/9, when it unleashed a CNY 4trn spending package, China’s government is now seeking to address growth concerns with a chisel instead of a sledgehammer,” noted JP Morgan Asset Management chief market strategist Tai Hui.

South Korea’s Kospi lost 0.31% to close at 2,273.03, while the Hang Seng Index in Hong Kong managed gains of 0.9% to 28,920.90.

Trade was once again high on the minds of traders, after Washington said it would offer up to $12bn in aid to US farmers being affected by charges set by other nations in retaliation to Donald Trump’s punitive tariff policy.

The president continued his defence of his controversial and unprecedented approach to trade using his favoured medium of Twitter on Tuesday, saying “Tariffs are the greatest!”

“Either a country which has treated the United States unfairly on Trade negotiates a fair deal, or it gets hit with Tariffs [sic],” he added.

“It’s as simple as that - and everybody’s talking!”

Trump was set to meet with European Commission president Jean-Claude Juncker later on Wednesday US time, where the pair were expected to discuss American tariffs on European steel and aluminium exports.

Oil prices were higher, with Brent crude last up 0.61% at $73.89 per barrel, and West Texas Intermediate rising 0.25% to $68.69.

In Australia, the S&P/ASX 200 was down 0.29% at 6,247.60, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was ahead 0.4% to 8,933.89.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.2% at AUD 1.3455 and the Kiwi advancing 0.26% to NZD 1.4669.