Asian stocks traded mixed on Wednesday trade as the overnight bounce on Wall Street stalled. Recent concerns over trade tensions also persisted amid new China-U.S. trade developments.
Japan’s Nikkei 225 slipped 0.1 percent and the broader Topix edged down by 0.13 percent. Automakers traded higher while bank stocks came under pressure.
Elsewhere, South Korea’s benchmark Kospi index shed 0.31 percent, weighed down by declines in the technology sector as index bellwether Samsung Electronics lost 0.96 percent.
Steelmakers were mostly lower, with Posco sliding 1.08 percent.
Greater China markets were buoyant. Hong Kong’s Hang Seng Index added 0.27 percent, supported by gains in consumption-related stocks, which are seen as defensive. Shares of Mengniu Dairy were higher by 0.72 percent.
On the mainland, the Shanghai composite gained 0.64 percent and the smaller Shenzhen composite rose 0.4 percent.
Over in Australia, the S&P/ASX 200 eased 0.17 percent. Gold producers fell 0.84 percent and the heavily weighted financials sector shed 0.51 percent as all of Australia “Big Four” banks traded lower in the morning.
The mixed performance in Asia came after U.S. stocks rose in the last session on gains in technology stocks, which had fallen sharply on Monday.
China-US trade tensions
Trade tensions, which have recently been in the spotlight, continued to simmer: The U.S. Trade Representative’s office published its proposed list of around 1,300 Chinese imports that could be hit with tariffs.
In response, China said via an embassy statement it opposed the additional tariffs proposed and that “it is only polite to reciprocate,” Reuters reported. China’s ambassador to the U.S. also told CNBC on Wednesday that his country would “fight back” against the latest measures.
“This trade tension story is the biggest uncertainty for China from the external perspective and the story is developing every day,” Haibin Zhu, chief China economist at J.P. Morgan, told CNBC’s “Squawk Box.”
“Trade war, or the tariffs, are never a zero sum game. It’s actually a lose-lose situation. China will probably lose more, but the U.S. will also suffer,” he added.
Markets have been on edge about U.S. tariffs triggering retaliatory actions from U.S. trading partners and potentially causing a trade war.
The dollar held above 106 yen, although the greenback was slightly softer compared to levels around the 106.6 handle seen in the last session. The dollar traded at 106.56 yen by 9:36 a.m. HK/SIN.
The dollar index, which tracks the greenback against six currencies, stood at 90.129.
In corporate news, Elliott Advisors, an arm of activist hedge fund Elliott Management, said it had a stake worth more than $1 billion in three affiliates of Hyundai Motor Group. Reuters reported that Elliott was pushing for corporate governance improvement.
Shares of Hyundai Motor, Hyundai Mobis and Kia Motors rose 3.95 percent, 3.72 percent and 2.83 percent, respectively.
