Asia report: Markets sink lower as trade confusion continues

Markets in Asia finished in the red on Wednesday, led lower by China amid concerns about trade, oil prices and renminbi.

In Japan, the Nikkei 225 was down 0.31% at 22,271.77, as the yen strengthened 0.19% to last trade at JPY 109.85.

Energy stocks were ahead as oil prices rose, while shipping firms and airlines fell to join banks and carmakers on the downside in Tokyo.

On the mainland, the Shanghai Composite slid 1.11% to 2,812.87, and the smaller, technology-heavy Shenzhen Composite closed 1.29% lower at 1,575.57.

South Korea’s Kospi was 0.38% lower at 2,342.03, while the Hang Seng Index in Hong Kong fell 1.82% to 28,356.26.

Gains were seen among blue-chip technology stocks in Seoul, with Samsung Electronics up 2.02% and SK Hynix ahead 1.07%, while carmakers and manufacturers fell, with Posco falling 3.22%.

Early in the session, traders in the region apparently shrugged off the slim gains seen on Wall Street overnight, as trade concerns continued to weigh on sentiment.

Confusion over White House plans to stem the flow of foreign investment continued, with Donald Trump’s economic advisor Peter Navarro telling media that there weren’t any such plans.

That came after Treasury secretary Steven Mnuchin said on Monday that a weekend report from the Wall Street Journal, suggesting Chinese investment in US tech would be restricted, was “false, fake news”.

He then went on to explain that such measures would apply to “all countries”, and not just China.

“We continue to go in circles on trade policy," noted Aberdeen Standard Investments senior emerging markets economist Alex Wolf.

“The question vexing markets is whether or not this is brinkmanship and can be negotiated, or part of a longer-term strategy aimed at restructuring the US-China economic relationship.”

Oil prices continued to push higher, with Brent crude last up 0.63% to $76.79 per barrel, while West Texas Intermediate rose 0.84% to $71.13.

In Australia, the S&P/ASX 200 slipped just 0.03% to 6,195.90, with the hefty financials subindex and telecoms stocks on the back foot.

Oil producers were ahead, with Santos up 2.17% and Woodside Petroleum rising 1.39%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was the odd one out, managing gains of 0.08% to 8,996.52.

It was led higher by payments technology firm Pushpay, which was ahead 2.7%.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.1% to AUD 1.3541, and the Kiwi retreating 0.5% to NZD 1.4665.