Asia report: Markets take a dip after disappointing China data

Markets in Asia were in the red on Monday, after fresh trade data out of China left many participants disappointed.

In Japan, the Nikkei 225 slid 2.12% to 21,219.50, as the yen weakened 0.05% against the dollar to last trade at JPY 112.75.

The broader Topix index was 1.89% lower at 1,589.81 in Tokyo.

Technology stocks were among the leading losers, with the bottom falling out of stocks in electronics manufacturer Pioneer.

It lost 27.27% after its acquisition by Baring Private Equity Asia was confirmed.

Screen manufacturer Japan Display plummeted 10.61% after it refuted earlier media reports that it was planning to reduce its output of smartphone screens this month.

Technology conglomerate SoftBank was 3.51% lower ahead of the float of its mobile division, set to take place of 19 December.

On the mainland, the Shanghai Composite was 0.82% weaker at 2,584.58, and the smaller, technology-heavy Shenzhen Composite was 1.35% lower at 1,332.53.

Fresh data out of China showed exports and imports in the People’s Republic were weaker than expected in November.

Exports were up 5.4% year-on-year, compared to the 10% forecast by a Reuters poll of economists, while imports slowed to their lowest rate in more than two years at 3%, which was well off the 14.5% anticipated.

“Softer export growth reflects slower global growth and the fading effect of US importers' front‑loading shipments to avoid increases in tariffs,” noted analysts at Commonwealth Bank of Australia.

“Falling import growth points to softening domestic demand.”

The analysts said they were expecting state stimulus to prop up imports next year, however.

South Korea’s Kospi was down 1.06% at 2,053.79, while the Hang Seng Index in Hong Kong lost 1.19% to 25,752.38.

Technology plays were also among the weakest on the Korean peninsula as well, with chip manufacturer SK Hynix falling 1.95%.

Ongoing geopolitical tensions were also high on the agenda, after Beijing summoned the US ambassador, Terry Branstad, to explain the arrest of Huawei chief financial officer Meng Wanzhou.

Meng was arrested by Canadian authorities while transiting at Vancouver Airport last week, on behalf of US officials who accuse her of trying to evade US sanctions on Iran.

Oil prices were lower as the region said goodnight, with Brent crude last down 1.28% at $60.89 per barrel, and West Texas Intermediate off 1.88% at $51.64.

In Australia, the S&P/ASX 200 fell 2.27% to settle at 5,552.50, with the big four banks dragging down the hefty financials subindex.

Australia and New Zealand Banking Group was off 4.16%, Commonwealth Bank of Australia lost 2.98%, National Australia Bank slipped 2.54%, and Westpac Banking Corporation stumbled 3.38%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 1.2% at 8,660.02, led lower by subscription broadcaster Sky - no relation to its London-listed namesake - which was off 7.1%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.12% at AUD 1.3872, and the Kiwi advancing 0.3% to NZD 1.4527.