Asian Markets Settle Lower on Deteriorating U.S- China Trade Relations

Asian markets closed mostly on negative notes on Tuesday as investors digested an intensifying trade dispute between the U.S. and China.

Declines in Asian equities followed sharp losses in Wallstreet on Monday following the report by the Wallstreet Journal stating that U.S. President Donald Trump intends to block some Chinese companies from investing in U.S. technology.

Additionally, US Treasury Secretary Steven Mnuchin said the investment constraints, reported by the Wall Street Journal, were “false, fake news,” Be that as it may,  he said that the measures would apply to “all countries” stealing US technology, not only China.

In China, Chinese President Xi Jinping has suggested his country would “punch back” against further trade restrictions.

Markets in mainland China fell as trade relation with the United States are deteriorating, with its primary benchmark Shanghai Composite lost 0.51 percent to close at 2,844.67 pressured by significant losses in its Energy and Financial sectors. Meanwhile, Shenzhen SE Composite added 0.6 percent to end the session in at 1,596.17 bolstered by telecommunication Service, Technology and industrial sectors.

In Hong Kong, equities also declined as Hang Seng index fell by 0.28 percent or 79.99 points to settle at 28,881.40 as losses in the Consumer Cyclicals and Energy sectors weighed on the broader market.

In the Corporate space, Leshi Internet Information and Technology saw their shares jump by nearly 10 percent in Shenzhen after news that Evergrande Health Industry Group would buy a 45 percent stake in electric car maker Faraday Future. Evergrande Health share price soared by 66.59 percent in Hong Kong on the news.

In South Korea, equities closed today’s trading session in the red, as Seoul’s main index KOSPI fell by 0.30 percent to close lower at 2,350.92, as significant losses in the basic materials sectors pressured prices lower.

Japanese Stock Market:

Tokyo’s primary benchmark Nikkei 225 index traded at constant levels to end the session at 22,342.00, as gains in is Utility sectors were offset by losses in the Energy sector.

In the Corporate world,  reports that SoftBank is planning to apply to list its Japanese mobile unit in Tokyo as soon as July. As reported by The Nikkei business daily. SoftBank’s shares are losing more than 2 percent on the news.

The Bank of Japan reported that the latest Japanese producer prices rose 1.0 percent on year in May. The reading was in line with analyst estimates and unchanged from Aprils Producers prices following and the upwards revision.

In the Forex market, the U.S Dollar fell against the Japanese Yen to trade at 109.687 USDJPY at 11:00 GMT.

Australian Stock Market:

Australian shares fell by 0.21 percent, with Sydney’s primary benchmark S&P/ASX200 ended the session at 6,197.60 as declines in the Energy and Basic Materials sectors weighed on the Aussie stocks.

In the corporate space, BHP Billiton and its joint-venture partner Vale have reached a framework agreement with Brazilian prosecutors to negotiate a settlement of a A$55.35 billion claim relating to the fatal Samarco mine disaster in November 2015.

Collins Foods, Australia’s biggest KFC franchisee, reported a 16 percent increase in full-year profit on a nearly 22 percent jump in revenue. Despite the growth in profits, the company’s shares lost nearly 3 percent.

In the currency market, the Aussie fell against the U.S. Dollar to trade at 0.74029 AUDUSD at 11:00 GMT.