Asian Stocks Close Mixed as Google Cuts Ties With Huawei

By Investors Hub

Asian stocks ended mixed on Monday as trade worries persisted, offsetting a surprise election victory for Australia’s pro-coal ruling coalition and upbeat Japanese GDP data.

Markets remained fragile after Chinese foreign minister Wang Yi told U.S. Secretary of State Mike Pompeo in a call that negotiating on an equal footing is the only way to solve pressing trade issues.

Chinese shares closed lower as trade war fears simmered. The benchmark Shanghai Composite Index dropped 11.69 points or 0.4 percent to 2,870.60, while Hong Kong’s Hang Seng Index ended down 158.85 points or 0.6 percent at 27,787.61.

China’s offshore yuan strengthened after the country’s central bank said that it would maintain the stability of its yuan within a reasonable and balanced range.

Japanese shares inched higher as first quarter GDP data topped forecasts. Growth in the nation’s economy unexpectedly accelerated to an annualized 2.1 percent in the first quarter, defying expectations for a 0.2 percent contraction. However, the surprise expansion was mostly caused by imports declining faster than exports.

The Nikkei 225 Index rose 51.64 points or 0.2 percent to 21,301.73, while the broader Topix index closed nearly flat at 1,554.92. Exporters edged higher as the yen weakened to a two-week low versus the dollar. Honda Motor rose 0.6 percent, Panasonic added 0.7 percent and Canon gained 1.1 percent.

Technology firms followed their U.S. peers lower, with electronics and semiconductor company Tokyo Electron tumbling by 3.1 percent.

Paper manufacturing company Hokuetsu Corp soared 9 percent after forecasting a 62.9 percent jump in operating profit for the year ending March 2020.

Australian stocks hit their highest level since December 2007 following the ruling conservative party’s surprise victory in the country’s federal election.

The benchmark S&P/ASX 200 Index jumped 110.80 points or 1.7 percent to 6,476.10, while the broader All Ordinaries Index surged up 1.6 percent to 6,564.70.

Financials did particularly well, with the big four banks spiking 6-9 percent. Miners and energy stocks turned in a mixed performance despite strong gains in iron ore and crude oil prices in recent sessions.

Chemicals and fertilizer manufacturer Incitec Pivot tumbled 2.7 percent after it reported a 72 percent slump in profit for the first half of the year.

South Korea’s shares came off their highs to end little changed with a negative bias as foreign investors continued to offload shares for an eighth consecutive session, marking the longest selling spree since November last year.

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.

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