Asia report: Markets mixed as traders digest punitive US tariffs

Markets in Asia finished mixed on the last trading day of the week, with investors exercising caution over renewed US trade tensions after Washington announced punitive tariffs on some of its allies overnight.

The Nikkei 225 was down 0.14% at 22,171.35, as the yen weakened 0.74% against the dollar to last trade at JPY 109.63.

Tokyo’s broader Topix index managed gains of 0.1%, with the biggest wins seen among banking stocks, carmakers and materials plays.

On the mainland, the Shanghai Composite was off 0.65% at 3,075.46, and the smaller, technology-heavy Shenzhen Composite lost 1.2% to 1746.33.

South Korea’s Kospi added 0.66% to finish at 2,438.96, while the Hang Seng Index in Hong Kong eked out gains of 0.08% at 30,492.91.

Trade concerns were once again at the top of market watchers’ agendas after the White House announce tariffs on aluminium and steel imports from Canada, Mexico and the European Union.

The tariffs were implemented almost immediately, taking effect from midnight Thursday, Eastern Daylight Time.

Canada was one of the quickest to hit back, announcing dollar-for-dollar tariffs on the US while the EU said it would also bring in countermeasures to combat the tariffs.

The political crisis in Italy, which had led headlines earlier in the week, was moved to the backburner as populist parties came to a consensus to form a coalition government.

Previous coalition plans fell apart last weekend after the Italian president went against parliamentary recommendations in the appointment of key ministers.

Oil prices were lower, with Brent crude last down 0.49% at $77.18 per barrel and West Texas Intermediate losing 0.81% to $66.50.

In Australia, the S&P/ASX 200 was down 0.36% at 5,990.40, led lower by the hefty financials subindex and the energy sector.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 lost 0.3% in light trading, led lower by A2 Milk, which slid 3.9%.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.41% at AUD 1.3268 and the Kiwi retreating 0.5% to NZD 1.4355.