Asian stock markets ended mixed Monday as early broad gains scored initially on an upbeat U.S. jobs report from Friday faded as trading wore on.
Investors in the region initially seemed to brush off threats from China to impose retaliatory tariffs on $60 billion of U.S. goods but global trade-war concerns, fueled by weekend comments, had established their grip as the session advanced.
In Chinese markets, the Shanghai Composite SHCOMP, -1.29% was initially helped by gains for financial stocks before trade worries took over. The index closed down 1.3%.
A weekend editorial in China’s Global Times newspaper, known for its nationalistic views, said the country was ready for a “protracted war” over trade and that Washington had “lost its mind” over the skirmish.
On Friday, China announced tariffs on $60 billion of U.S. products, in response to the U.S.’s planned 25% tariffs on $200 billion of Chinese imports. And on Sunday, U.S. President Donald Trump tweeted that tariffs are “working big time.”
Smaller-cap stocks in Shenzhen 399106, -2.08% fell more than 2%. Health-care stocks remained weak, with drug-related names still feeling pressure from the country’s vaccine scandal. But BGI Genomics 300676, +3.18% bounced 3.2% after property veteran Wang Shi was appointed co-chairman.
Japan’s Nikkei NIK, -0.08% closed down less than 0.1% amid declines by major banks, with Sumitomo Mitsui Financial Group 8316, -1.43% down 1.4% and Mitsubishi UFJ Financial Group 8306, -2.29% dropping 2.2%. Manufacturers gained though, with Honda Motor 7267, +0.36% up fractionally and robot-maker Fanuc 6954, +1.03% up 1%.
Hong Kong stocks rebounded to start the week. The Hang Seng Index HSI, +0.52% was up 0.5%, trimming stronger earlier gains. Tencent 0700, +0.91% rebounded 0.9%, putting it barely into positive territory for August, while fellow heavyweight HSBC 0005, +0.48% recovered 1.2% during Hong Kong hours, ahead of earnings. The bank eventually said higher costs weighed on first-half profit as it embraced ambitious growth plans and steps up investment in technology and its expanding China business.
Meanwhile, after skidding 15% on Thursday and 16% on Friday, biotech Ascletis 1672, +8.58% started its fourth public trading day with a 8.6% gain.
South Korea’s Kospi SEU, -0.05% fell less than 0.1% after initial gains, wrecking its chance for a sixth gain in the past eight sessions. Heavyweight Samsung Electronics 005930, +0.11% climbed 0.1%. Taiwan’s Taiex Y9999, +0.11% rose 0.1%, although Taiwan Semiconductor 2330, -0.61% fell 0.6% after it had it to shut a number of chip factories over the weekend due to a computer virus. Benchmarks in Singapore STI, +0.60% and Malaysia FBMKLCI, -0.02% gained as well.
Australia’s S&P/ASX 200 XJO, +0.61% was 0.6% higher, with the materials sector rebounding nearly 1% following last week’s softness. New Zealand’s NZX 50 NZ50GR, +0.44% was up 0.4%.
Providing critical information for the U.S. trading day. Subscribe to MarketWatch's free Need to Know newsletter. Sign up here.
