Asian Markets Close Mixed as Beijing Considers High Tariffs on US Goods

April 4, 2018
Asian Markets Close Mixed as Beijing Considers High Tariffs on US Goods

By Investors Hub

Asian stocks ended mixed on Wednesday as investors braced for China’s countermeasures against U.S. tariffs on Chinese products worth about $50 billion.

Beijing has vowed to impose measures of the “same strength” against U.S. goods, fueling fears that an escalating trade war could hurt global growth.

Traders also awaited cues from Friday’s U.S. employment report as well as a slew of U.S. reports on private sector employment, service sector activity, factory orders and international trade due this week.

China’s Shanghai Composite Index gave up initial gains to end down 4.79 points or 0.2 percent at 3,131.84 ahead of the Tomb-sweeping holiday break. Hong Kong’s Hang Seng Index plunged 661.41 points or 2.2 percent to 29,518.69.

Meanwhile, Japanese shares ended higher in choppy trading as gains by automakers offset declines by technology shares. The Nikkei 225 Index swung between gains and losses before finishing 26.26 points or 0.1 percent higher at 21,319.55. The broader Topix index closed up 0.1 percent at 1,706.13.

Honda Motor rose 1.3 percent, Mazda Motor added 1.4 percent and Mitsubishi Motors gained 2.1 percent after reporting strong U.S. sales figures.

On the other hand, tech stocks continued to come under selling pressure, with Advantest, Tokyo Electron and TDK losing 2-3 percent.

In economic news, Japan’s service sector continued to expand in March, albeit at a slower pace, the latest survey from Nikkei revealed with a services PMI score of 50.9, down from 51.7 in February.

Australian shares recouped early losses to end modestly higher, snapping a three-session losing streak. The benchmark S&P/ASX 200 Index ended up 9.50 points or 0.2 percent at 5,761.40, while the broader All Ordinaries Index finished marginally higher at 5,863.70.

Banks Commonwealth, NAB and Westpac rose between 0.3 percent and 0.8 percent as the Aussie dollar moved higher after the release of encouraging retail sales figures.

Retail sales advanced a seasonally adjusted 0.6 percent sequentially in February, beating expectations for a 0.3 percent gain. However, separate reports on consumer confidence and building approvals disappointed investors.

Mining giants BHP Billiton and Rio Tinto ended roughly flat, while gold miner Newcrest dropped 1.5 percent. Biotechnology company CSL advanced 1.2 percent.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

Leave a Reply

European Stock Markets Fall as Dollar Slips Against Euro
Previous Story

European Stock Markets Fall as Dollar Slips Against Euro

NSE index falls
Next Story

Sell-offs Across Sectors Weaken NSE Index Further by 0.26%

Latest from Economy

Don't Miss