Asia report: Most markets positive as US-China tariffs take effect
Most markets in Asia finished in the green on Friday, as US tariffs on $34bn of Chinese good came into effect and Beijing retaliating with its own tariffs.
In Japan, the Nikkei 225 was up 1.12% at 21,788.14, as the yen strengthened 0.01% against the dollar to last trade at JPY 110.63.
Most sectors were in positive territory on the broader Topix, after three sessions in a row of declines for Tokyo.
On the mainland, the Shanghai Composite rose 0.46% to 2,746.48, and the smaller, technology-heavy Shenzhen Composite finished ahead 0.48% at 1,535.98.
South Korea’s Kospi was 0.68% higher at 2,272.87, while the Hang Seng Index in Hong Kong managed gains of 0.47% to 28,315.62.
Traders appeared to mostly shrug off the implementation of Washington’s punitive tariffs and Beijing’s retaliatory action, despite a tense lead-up to the deadline for much of the last fortnight.
The Trump administration’s action took effect at midday Hong Kong time, with China confirming its own tariffs were also being implemented soon after.
Beijing officials had said earlier in the week that they would refuse to “fire the first shot” in the ongoing trade dispute.
Not long before the tariffs came into effect, US president Donald Trump doubled down on his stance, announcing that another $16bn of Chinese products would be subject to yet more tariffs in two weeks’ time.
He also suggested there would be charges added to half a trillion dollars of imports from China.
Oil prices were lower, with Brent crude last down 0.38% at $77.10 per barrel, and West Texas Intermediate falling 0.04% to $72.91.
In Australia, the S&P/ASX 200 advanced 0.91% to close at 6,272.30, led by significant gains for the materials and telecoms subindices.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.2% at 9,084.04, led higher by ailing construction conglomerate Fletcher Building, which rose 3.4%.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.3% at AUD 1.3496 and the Kiwi advancing 0.37% to NZD 1.4677.