Asian markets are mostly lower on lingering trade jitters

SEOUL, Korea, Republic Of – Asian markets were mostly lower on Wednesday as jitters over trade conflicts between the world’s major economies lingered. The prices of oil extended gains as the U.S. pushed other countries to but oil imports from Iran.

KEEPING SCORE: Japan’s Nikkei 225 fell 0.4 per cent to 22,251.36 and South Korea’s Kospi fell 0.1 per cent to 2,348.97. China’s Shanghai Composite Index retreated 0.5 per cent to 2,831.66. Hong Kong’s Hang Seng fell 0.5 per cent to 28,735.71. Australia’s S&P-ASX 200 fell less than 0.1 per cent to 6,195.30. Stocks in Taiwan, Singapore and other Southeast Asian markets were higher.

UNDERPERFORMING CHINA: Chinese stocks have been the global market’s worst performers this year. Shanghai Composite Index sank 14 per cent since the start of this year while Japan’s Nikkei fell 3 per cent and Hong Kong’s Hang Seng fell 0.4 per cent. In comparison, Wall Street has gained ground since the start of this year. The tech-heavy Nasdaq composite gained 9.5 per cent so far this year while the S&P 500 index advanced 2 per cent. Analysts said that a combination of factors such as jitters over trade conflicts, Beijing’s move to tighten liquidity and signs of growth momentum losing steam contributed to the sell-offs.

ANALYST’S TAKE: “To a large extent, the Chinese market is one driven by speculation,” said Jingyi Pan, a market strategist at IG in Singapore, adding that “with sentiment rolling over itself of late, particularly over the escalating trade tensions that seems to have no end, it should be of little surprise to find the market crumbling.” Pan added: “the growth momentum presents the image of stalling in China that altogether amalgamates to an attack on investors’ confidence.”

WALL STREET: U.S. stocks finished slightly higher Tuesday, a day after heavy sell-offs. The S&P 500 index gained 0.2 per cent to 2,723.06. The Dow Jones Industrial Average gained 0.1 per cent to 24,283.11. The Nasdaq composite added 0.4 per cent to 7,561.63. The Russell 2000 index picked up 0.7 per cent to 1,668.53.

OIL: Benchmark U.S. crude gained 36 cents to $70.89 per barrel in electronic trading on the New York Mercantile Exchange. The contract added 3.6 per cent to finish at $70.53 a barrel in New York on Tuesday. Brent crude, used to price international oils, added 24 cents to $76.38 per barrel in London. It rose 2.1 per cent to settle at $76.14 per barrel in the previous session. President Donald Trump who withdrew the U.S. from the Iran nuclear deal in May, is pushing foreign nations to cut their oil imports from Iran to zero by November when sanctions on Iran’s energy sector will kick in again.

Currencies: The dollar fell to 109.91 yen from 110.03 yen. The euro gained to $1.1660 from $1.1646.