Asia report: Most markets fall amid renewed trade concerns

Most markets in Asia were in the red on Thursday, led lower by Japanese bourses, as investors digested fresh concerns around the ongoing trade war between the United States and China.

In Japan, the Nikkei 225 was down 1.97% at 21,046.24, as the yen strengthened 0.06% against the dollar to last trade at JPY 107.88.

Of the major components on the benchmark index, automation specialist Fanuc was down 1.97%, fashion firm Fast Retailing lost 0.51%, and technology conglomerate SoftBank Group slid 2.41%.

The broader Topix index was 2.11% lower by the end of trading in Tokyo, settling at 1,534.27.

In fresh economic news out of Japan, the country’s exports were 6.7% weaker in June compared to the same time last year.

That exceeded expectations for a 5.6% fall in exports, according to economists polled by Reuters.

On the mainland, the Shanghai Composite was off 1.04% at 2,901.18, and the smaller, technology-heavy Shenzhen Composite lost 1.63% to 1,548.64.

South Korea’s Kospi was 0.31% weaker at 2,066.55, while the Hang Seng Index in Hong Kong slipped 0.46% to 28,461.66.

Both of the blue-chip technology stocks were higher in Seoul, with Samsung Electronics ahead 0.11% and chipmaker SK Hynix rising 0.13%.

The Bank of Korea confirmed a 25 basis point interest rate cut on Thursday, after the country’s growth target was also slashed earlier in the month.

South Korea’s economy has been facing weakness amid an ongoing trade dispute with Tokyo, which saw Japan place restrictions on materials imported by the peninsula’s technology sector.

Concerns around the US-China trade war were renewed this week, affecting sentiment in Asia, after Donald Trump made fresh threats to slap punitive tariffs on another $325bn of Chinese goods.

Oil prices were higher as the region went to bed, with Brent crude last up 0.93% to $64.26 per barrel, and West Texas Intermediate ahead 0.84% to $57.26.

In Australia, the S&P/ASX 200 fell 0.36% to 6,649.10, with property company Lendlease rocketing 4.75% after it announced a $15bn contract with Alphabet division Google in California.

The sunburnt country’s unemployment rate was stable in June at 5.2%, with a net 500 jobs added to the economy during the month.

That missed expectations from economists polled by Reuters for a net new 10,000 jobs.

“The Aussie [dollar] ticked higher after the jobs data showed that the Australian economy added 21,100 new full-time jobs in June, though erasing 20,600 part-time jobs,” said London Capital Group senior market analyst Ipek Ozkardeskaya.

“The NAB business confidence index surged to 6 in the second quarter from -1 printed earlier.

“The ASX traded 0.28% lower, energy stocks led losses in Sydney as the barrel of WTI traded below the $57 level.”

Across the Tasman Sea, New Zealand’s S&P/NZX 50 went against the regional trend, rising 0.8% to reach a new record high close of 10,741.09.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.34% at AUD 1.4217, and the Kiwi advancing 0.19% to NZD 1.4829.