Asia report: Most markets rise as China announces fresh tariffs
Most markets in Asia finished in the green on Wednesday, as investors once again shrugged off concerns of further escalations in the ongoing US-China trade conflict.
AUD/USD
$0.6533
23:03 26/04/24
GBP/NZD
NZD2.1025
23:53 26/04/24
Hang Seng
17,651.15
10:20 26/04/24
Nikkei 225
37,934.76
09:44 26/04/24
USD/JPY
¥158.3270
01:54 27/04/24
In Japan, the Nikkei 225 was ahead 1.08% at 23,672.52, as the yen slipped 0.03% against the dollar to last trade at JPY 112.39.
The broader Topix index rose 1.46% to 1,785.66, as the Bank of Japan sated market expectations to stand pat on monetary policy.
In its statement, the central bank remained upbeat about the country’s economic outlook, saying it expected it to “continue its moderate expansion”.
The bank also said it was anticipating a continued rise in domestic demand.
On the mainland, the Shanghai Composite was 1.14% firmer at 2,730.85, and the smaller, technology-heavy Shenzhen Composite tacked on 1.35% to 1,423.22.
Sentiment in the People’s Republic was boosted by comments from Premier Li Keqiang to the World Economic Forum in Tianjin, where he said the country was satisfied with its current economic position, despite the “greater difficulties” being faced in “keeping stable performance of the Chinese economy”.
Li said Beijing had the right policy tools in its arsenal to ensure the country was resilient to economic struggles.
South Korea’s Kospi slipped 0.02% o 2,308.46, while the Hang Seng Index in Hong Kong added 1.19% to 27,407.37.
Trade tensions were once again atop the agenda, after China announced tariffs on $60bn worth of US imports, to go into effect on 24 September.
It did reduce the tariff to 10% on a number of the 5,000 US products, however, from a previously-signalled 20% level.
The Commerce Ministry in Beijing also confirmed on Wednesday that it had filed a complaint against the United States with the World Trade Organisation.
China’s new tariffs were in response to the recent confirmation from the Trump administration that it was slapping a 10% charge on $200bn of Chinese imports to the US, to rise to 25% from 1 January.
“China is limited in its scope for direct retaliation from here, with only $50 billion worth of imports left to target, but so far has refrained from threatening to tariff all imports from the US,” noted ANZ Research’s Jo Masters.
Oil prices were lower, with Brent crude last down 0.03% at $79.01 per barrel, and West Texas Intermediate slipping 0.04% to $69.82.
In Australia, the S&P/ASX 200 managed gains of 0.46% to settle at 6,190.00, as major miners kept their heads above water.
BHP was up 2.92% in Sydney trading, while Fortescue leapt 4.7% and Rio Tinto gained 3.06%.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was ahead 0.3% at 9,345.06, led higher by honey and health products firm Comvita, which was ahead 2.7%.
Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.51% at AUD 1.3780, and the Kiwi advancing 0.4% to NZD 1.5123.