Asian markets fell in early trading Wednesday, following losses on Wall Street as the trade war between the U.S. and China showed no signs of thawing.
With a lull in economic releases closer to home, investors digested President Donald Trump’s comments that the country was “not ready” for a trade deal with China. Trump spoke to reporters in Tokyo on Monday.
Late Tuesday, the U.S. decided not to label China a currency manipulator, although it was on a list, along with eight other countries, whose trade surpluses with the United States and other indicators are being closely tracked.
Also late Tuesday, Huawei Technologies Co. filed a motion in U.S. court challenging the constitutionality of a law that limits its sales of telecom equipment.
Japan’s Nikkei NIK, -1.14% fell 1.1%, and Hong Kong’s Hang Seng Index HSI, -0.40% retreated 0.4%. The Shanghai Composite SHCOMP, -0.11% inched down 0.2%. South Korea’s Kospi 180721, -1.34% dropped 1.3%, and benchmark indexes in Taiwan Y9999, -0.21% , Singapore STI, -0.27% and Indonesia JAKIDX, +0.98% were mixed. Australia’s S&P/ASX 200 XJO, -0.76% slipped 0.7%.
Among individual stocks, convenience-store chain FamilyMart 8028, -5.38% tumbled in Tokyo trading. Sony 6758, -2.05% and Fast Retailing 9983, -1.37% fell as well. in Hong Kong, Sunny Optical 2382, +1.16% gained, while Sands China 1928, -2.57% and AIA Group 1299, -1.35% declined. Samsung 005930, -2.00% retreated in South Korea. Beach Energy BPT, -2.05% and Oil Search OSH, -0.83% fell in Australia.
“To some extent, the sparing of China as a currency manipulator had been expected but provides some relief for one watching the U.S.-China trade impasse,” Jingyi Pan of IG said in a market commentary.
She added that China’s official PMI for May, which will be released on Friday, would be watched an indicator of the initial impact of tariffs on growth.
Over on Wall Street, stocks closed broadly lower as investors who felt jittery about long-term growth shifted money into bonds. The yield on the benchmark 10-year Treasury fell to 2.26%, its lowest level since September 2017.
The broad S&P 500 index SPX, -0.84% slipped 0.8% to 2,802.39 on Tuesday. The Dow Jones Industrial Average DJIA, -0.93% shed 0.9% to 25,347.77 and the Nasdaq composite COMP, -0.39% was down 0.4% at 7,607.35.
Benchmark U.S. crude CLN19, -1.03% lost 63 cents to $58.51 per barrel. The contract rose 51 cents to $59.14 per barrel on Tuesday. Brent crude BRNN19, -0.68% , the international standard, fell 57 cents to $68.10 per barrel. It settled 10 cents lower at $68.67 per barrel in the previous session.
The dollar USDJPY, -0.05% strengthened to 109.38 yen from 109.36 yen late Tuesday.
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