Asian Stocks Close Lower as Trade Worries Persist

By Investors Hub

Asian stocks closed mostly lower on Monday as trade worries persisted and oil prices gave up some of their hefty gains made on Friday after OPEC pledged to increase production by less than the market feared.

China’s Shanghai Composite Index fell 29.99 points or 1 percent to 2,859.77, as news of a cut in the reserve requirement ratio for some banks was offset by lingering trade war fears. Hong Kong’s Hang Seng Index tumbled 377.31 points or 1.3 percent to 28,961.39.

The Wall Street Journal reported that U.S. President Donald Trump plans to bar Chinese companies from investing in U.S. technology firms and block additional technology exports to Beijing.

Japanese shares fell as the yen firmed up in reaction to reports suggesting that the Trump administration plans to put curbs on Chinese investment in U.S. technology firms. The Nikkei 225 Index dropped 178.68 points or 0.8 percent to 22,338.15, while the broader Topix index closed 1 percent lower at 1,728.27.

Large cap stocks fell, with Fast Retailing losing 1 percent and SoftBank ending down 2.4 percent. Sharp Corp slumped 5.1 percent on equity dilution worries.

Australian shares fell modestly, dragged down by banks after Commonwealth Bank unveiled plans to spin off its wealth management and mortgage broking business.

The benchmark S&P/ASX 200 Index dipped 14.80 points or 0.2 percent to 6,210.40, while the broader All Ordinaries Index ended down 13.40 points or 0.2 percent at 6,308.70.

Commonwealth Bank lost 2.3 percent after announcing radical restructuring plans. The other three big banks fell between 0.6 percent and 1.1 percent.

Meanwhile, higher commodity prices helped lift mining and energy stocks, with BHP Billiton, Fortescue Metals Group, Rio Tinto, Woodside Petroleum, Santos, Oil Search and Origin Energy rising 1-2 percent.

Gold miner Evolution Mining gained 0.9 percent and Newcrest Mining added 0.8 percent as gold prices rose on dollar weakness. Metcash rallied 2.2 percent after announcing a A$125 million share buyback.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

more recommended stories

%d bloggers like this: