Asia report: Markets mixed as investors look to Trump trade policy

Markets in Asia finished mixed on Monday, as investors kept their focus squarely on the United States, now turning their attention to the Trump administration’s trade policies.

Japan’s Nikkei 225 lost 1.29% to settle at 18,891.03, with a strengthening yen dragging on the benchmark.

The currency was last 0.75% ahead on the greenback, at JPY 113.76 per $1.

Computing firm Toshiba was ahead 9%, after a number of local outlets reiterated reports it was preparing to spin out its recently-downsized semiconductor business.

The major exporters were mostly down, with the stronger yen weighing on their stocks - Honda Motor was down 1.72%, Panasonic lost 1.62%, Sony was 1.15% softer and Toyota finished down 1.63%.

On the mainland, the Shanghai composite was up 0.43% at 3,236.64, while the Shenzhen composite was 0.87% firmer at 1,902.14.

South Korea’s Kospi was virtually flat, closing up 0.02% at 2,065.99 as the political turmoil surrounding impeached President Park Geun-hye continues.

Her culture minister and her former advisor were arrested on Sunday, after allegations emerged that they “blacklisted” news articles critical of Park’s government.

Technology giant Samsung Electronics was 1.56% firmer after it told markets it had finally identified what made its now-cancelled flagship Galaxy Note 7 smartphone so spontaneously combustible.

It said manufacturing issues, primarily the process in layering the batteries during assembly, played a part.

Shares in Sharp and Kuroda Electric were also moving - Sharp up 2.69% but Kuroda losing 1.91%.

In Hong Kong, the Hang Seng Index ended the day 0.06% higher at 22,898.52.

Not long after Trump’s inauguration as the 45th President of the United States on Friday, his administration said its trade strategy was to be a protectionist one in a bid to save domestic jobs.

It confirmed it was withdrawing from the controversial Trans-Pacific Partnership Agreement, and would “crack down on those nations that violate trade agreements and harm American workers in the process”.

“[Trump wants an] inward-looking and protectionist US, extolling 'only America first' policies on trade, taxes, immigration and on foreign affairs,” noted Mizuho Bank senior economist Vishnu Varathan.

Oil prices were down during Asian hours, after both OPEC and non-OPEC producer claimed success in their bid to lower oil output.

West Texas Intermediate was last down 1.41% at $52.48 per barrel, and Brent crude lost 1.34% to $54.81.

In Australia, the S&P/ASX 200 fell 0.77% to settle at 5,610.97, with the industrials sector plunging 3.97%.

Sydney-based logistics firm Brambles saw its stock free-fall 15.8% after it downgraded its earnings for the first half to 31 December, over jitters in its North American operation.

It said it expects sales revenue to now grow at 5%, down from the previous 7% to 9% guidance, with underlying profit growth to hover around 3% - a significant downgrade from the previous 9% to 11% guidance.

New Zealand’s S&P/NZX 50 eked out gains to finish up 0.3% at 7,087.84.

It was led by crude processor New Zealand Refining, which rose 1.5%, while health food manufacturer Comvita suffered a sharp 16.99% drop.

Both of the down under dollars were ahead on the greenback, with the Aussie last strengthening 0.06% to AUD 1.3228 per $1 and the Kiwi gaining 0.22% to NZD 1.3919.