Asia report: Markets mixed as fresh tariffs sow uncertainty
Asian markets were mixed on Monday as the latest round of tariffs in the US-China trade war took effect over the weekend.
A US tariff of 15.0% on more than $125bn of Chinese goods kicked in on Sunday, with Beijing retaliating by raising tariffs on some US goods.
However, both superpowers remain on course to return to the negotiating table later this month, leaving investors hesitant about how to proceed.
Japan's Nikkei 225 was down 0.41% at 20,620.19 as the index saw thin trading as the latest round of US-China tariffs weighed on investor sentiment, with major fallers including technology investor SoftBank Group and automaker Suzuki.
Meanwhile, the Japanese yen was down 0.06% against the US dollar at JPY106.34.
China's Shanghai Composite increased by 1.31% to 2,924.11, while the tech-heavy Shenzhen Composite jumped 2.26% higher to 1,614.92 following a better-than-expected reading on the Caixin manufacturing industry purchasing managers’ index.
Neil Wilson, chief market analyst at Markets.com, said: "The Caixin PMI inched into positive territory and a 5-month high. But the official manufacturing survey still shows factory activity contracted for a fourth straight month. Across the rest of Asia, PMIs show manufacturing sectors slipped into contraction in August. This decent Caixin print seems to be about better domestic demand due to stimulus efforts."
Hong Kong's Hang Seng Index dropped 0.38% to 25,626.55 as pro democracy demonstrations, which are now in their third month, disrupted airport traffic.
Shares of railway operator MTR, which some demonstrators believe is collaborating with police, dropped by around 3% after ticket machines, securing cameras and other equipment at multiple stations was damaged by protesters.
The South Korean Kospi edged 0.07% higher to 1,969.19, with industry bellwether Samsung Electronics down 0.45% and chipmaker SK Hynix up 0.26%.
In the background, Brent Crude was 0.71% lower at $58.83, while West Texas Intermediate was down 0.53% at $54.81.
Down under, the Australian S&P/ASX 200 was 0.38% lower at 6,579.41 as the drop in oil prices sent energy stocks lower and fertiliser maker Incitec Pivot slipped on an earnings downgrade.
However, miners such as Rio Tinto were buoyed by a 3.9% recovery in iron prices, with news of an Indonesian ban on ore exports sending Western Areas and Independence Group rocketing higher.
Meanwhile, New Zealand's S&P/NZX 50 finished the session 0.40% higher at 10,800.00 as Contact, Meridian, Property For Industry and Vector each racked up steady gains of between 1% and 3%.
Finally, the Australian dollar was down 0.18% against the US dollar at A$1.49, while New Zealand's dollar was down 0.15% at NZ$1.58.