Asia report: Most markets lower as sentiment remains depressed

Most markets in Asia finished in the red on Friday, with investors keeping their wallets firmly in their back pockets as geopolitical tensions between Washington and Beijing remained taut.

In Japan, markets were closed for a public holiday, as the yen strengthened 0.08% against the dollar to last trade at JPY 112.86.

On the mainland, the Shanghai Composite was down 2.49% at 2,579.48, and the smaller, technology-heavy Shenzhen Composite slid 3.66% to 1,335.15.

South Korea’s Kospi was 0.6% lower at 2,057.48, while the Hang Seng Index in Hong Kong slipped 0.35% to 25,927.68.

The blue-chip technology stocks were under pressure in Seoul, with smartphone giant Samsung Electronics off 0.12%.

Sentiment remained under pressure in the region ahead of a meeting between US president Donald Trump and his Chinese counterpart Xi Jinping next week.

“Concerns over trade tensions continue to build up ahead of the meeting between Donald Trump and Xi Jinping that is to happen on the sidelines of the G20 meeting next week,” noted analysts at OCBC Treasury Research.

Oil prices were lower, with Brent crude last down 2.72% at $60.94 and West Texas Intermediate falling 3.04% to $52.57 per barrel.

In Australia, the S&P/ASX 200 was 0.44% higher at 5,716.20, led by the hefty financials subindex, which rose 1.08%, while the mining sector largely slipped beneath the waterline.

BHP was down 0.72% and Rio Tinto fell 0.31%, though Fortescue Metals managed to rise 0.25% by end-of-play.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 slipped 0.02% to close at 8,710.38, led lower by retirement care provider Metlifecare, which was off 1.8%.

Outdoor clothing and equipment brand Kathmandu surged 12% after it reported an 8.3% increase in sales from its own stores, beating market expectations.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.43% at AUD 1.3845 and the Kiwi retreating 0.52% to NZD 1.4753.