Asia report: Markets finish mixed as Trump blasts tariff gun once more
Markets in Asia ended their week in a mixed state on Friday, as investors sifted through some disappointing manufacturing data out of China.
AUD/USD
$0.6558
15:32 29/04/24
GBP/NZD
NZD2.0985
15:31 29/04/24
Hang Seng
17,746.91
10:20 29/04/24
Nikkei 225
37,934.76
09:44 26/04/24
USD/JPY
¥156.4670
15:32 29/04/24
In Japan, the Nikkei 225 was down 1.63% at 20,602.19, as the yen strengthened 0.79% against the dollar to last trade at JPY 108.75.
Of the major components on the Tokyo benchmark, automation specialist Fanuc was down 0.94%, fashion firm Fast Retailing lost 2.18%, and technology conglomerate SoftBank Group was 1.11% lower.
Carmakers in the country were hit by a surprise announcement by Donald Trump of fresh tariffs on Mexico, given many Asian vehicle manufacturers use the country for some of their North American manufacturing.
Nissan was down 5.31%, and Toyota lost 2.85%.
The broader Topix index fell 1.29% to end its trading day at 1,512.28.
On the mainland, the Shanghai Composite lost 0.24% to close at 2,898.70, and the smaller, technology-heavy Shenzhen Composite was flat, losing just 0.01% to end the day at 1,531.86.
Sentiment in China was muted for much of the day, after Beijing’s official purchasing managers’ index came in below expectations for May, declining more than market watchers had anticipated.
The reading for the month came in at 49.4, missing a Reuters-polled forecast for 49.9.
South Korea’s Kospi managed gains of 0.14% to settle at 2,041.74, while the Hang Seng Index in Hong Kong slid 0.79% to 26,901.09.
The blue-chip technology stocks were on the wrong side of the ledger on the Korean peninsula, with Samsung Electronics slipping 0.12% and chipmaker SK Hynix down 0.92%
Carmakers were also in the red in Seoul after the announcement of Mexico tariffs, with Kia Motors sliding 4.49%.
The ongoing trade battle between the US and China took a fresh and unexpected turn overnight, given the surprise announcement of tariffs on Mexico from the White House.
President Donald Trump said charges would be levelled on all goods being imported from Mexico from 10 June, and said they would remain in place for as long as the perceived threat of illegal immigration from south of the border was extant.
China also stepped up its war of words, with the country’s vice-foreign minister Zhang Hanhui describing US attempts to apparently stoke the flames of trade tension as being “naked economic terrorism”.
London Capital Group head of research Jasper Lawler described the developments as a case of bad news “coming in threes”.
“China confirmed that it is ready to restrict rare earth minerals should the trade dispute with the US escalate further.
“Secondly Chinese manufacturing activity slipped into contraction as the impact of the latest round of Trump’s tariffs is felt, and thirdly Trump threatened to place escalating export tariffs on Mexico if it failed to bring illegal immigration under control.”
Oil prices were lower as the region went to bed, with Brent crude last down 3.43% at $64.65 per barrel, and West Texas Intermediate off 2.44% at $55.24.
In Australia, the S&P/ASX 200 eked out gains of 0.08% to finish its session at 6,396.90, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was ahead 0.5% at 10,117.99.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.08% at AUD 1.4457, and the Kiwi advancing 0.1% to NZD 1.5343.