Dipo Olowookere
By Investors Hub
Asian stocks ended mixed on Thursday after China announced retaliatory tariffs against the United States, raising concerns over the escalation of the trade war between the world’s top two economies.
A slump in oil prices overnight and the U.S. announcement that it would soon impose new sanctions on Russia also kept investors nervous.
Chinese stocks rallied after a government report showed consumer inflation in the country rose an annual 2.1 percent in July, exceeding expectations for 2.0 percent and up from 1.9 percent in June.
The producer price index climbed 4.6 percent from last year – beating forecasts for 4.5 percent and down from 4.7 percent in the previous month.
The benchmark Shanghai Composite index jumped 50.31 points or 1.83 percent to 2,794.38 while Hong Kong’s Hang Seng index gained 0.88 percent to close at 28,607.30.
Japanese shares fell as machinery orders data disappointed and caution crept in ahead of U.S.-Japan trade talks. The Nikkei average slid 45.92 points or 0.20 percent to 22,598.39, while the broader Topix index closed 0.26 percent lower at 1,740.16.
Suzuki Motor slumped over 6 percent, Yamaha Motor tumbled 4.6 percent and Mazda Motor Corp dropped 1.3 percent after they have admitted using falsified emissions data to inspect their vehicles.
Pioneer Corp soared 12.7 percent after reports that the electronics manufacturer is seeking for financial assistance to improve its business. Chemical engineering firm Showa Denko rallied 9.5 percent after raising its profit outlook for the fiscal year through December.
On the data front, the total number of core machine orders in Japan tumbled a seasonally adjusted 8.8 percent on month in June, the Cabinet Office said today. That was well shy of forecasts for a drop of 1.0 percent after a 3.7 percent decline in May.
On a yearly basis, core machine orders added 0.3 percent – again missing expectations for a spike of 10.5 percent.
Australian shares rose notably, with both the S&P/ASX 200 and the All Ordinaries index rising around half a percent to close at 6,297.70 and 6,383.60, respectively.
Banking and insurance retailer Suncorp jumped 4.7 percent after it agreed to sell its life insurance division to Japanese insurer Dai-ichi Life Holdings.
The big four banks rose between 0.8 percent and 1.2 percent while oil & gas producer Santos lost 2.3 percent. Power producer AGL Energy dropped 4.1 percent despite the company posting robust results for 2017/18 because of accounting and hedging changes.
Casinos operator Crown soared 6.7 percent after it filed a lawsuit to stop the government approving developments that obstruct views from its new Sydney resort of the Sydney Opera House and Harbour Bridge.
