Asian shares were mixed Monday, with stocks in Tokyo rising again after a harsh selloff two weeks ago, as investors focus on upcoming earnings reports and U.S. President Barack Obama’s visit to the region at a time of rising tensions.
Japan’s Nikkei 225 ended the week’s first session down 3.89 points to 14,512.38
Markets in Hong Kong, Australia and New Zealand were shuttered for a holiday
Some investors are hoping for progress in Trans-Pacific Partnership trade talks this week as Obama visits the region. That would be good for Japanese Prime Minister Shinzo Abe, who faces rising worries about the sustainability of Japan’s economic revival.
Yet Obama’s trip to Asia comes at a time of increasing diplomatic sparring between China and Japan, the region’s two biggest economic powers.
Over the weekend, the Shanghai Maritime Court seized a vessel owned by Japanese shipping giant Mitsui O.S.K. Lines over contract disputes dating to the second Sino-Japanese War, which began in the 1930s. Japan’s top government spokesman said Monday that the seizure could hurt bilateral ties.
On Monday, Abe sent a ritual offering at the Yasukuni Shrine, seen by many as a symbol of Japan’s militarist past. A number of convicted war criminals are enshrined there, and visits by Japanese prime ministers generally anger Beijing.
Still, the impact of the tensions on stocks appeared limited so far. Mitsui O.S.K. is down 0.8%.
In Japan, investors are also concerned about a sales tax increase that took effect this month and upcoming company earnings reports.
Also, data released Monday showed that Japan’s trade deficit ballooned in March as imports surged and export growth remained subdued. Many economists expect consumption to slow after the nation’s sales tax rose on April 1.
Big Japanese companies will start reporting their earnings later this week for the fiscal year ended in March, and offer earnings guidance for the New Year. Some investors are wary.
Among individual movers, Japanese consumer-focused lenders are higher following a report that the ruling Liberal Democratic Party is considering loosening restrictions on money lenders to make it easier for smaller businesses shunned by banks. Credit Saison is up 1.7% at ¥2,267.
In other markets;
The Shanghai CSI 300 dipped 37.23 points, or 1.7%, to 2,187.25
Taiwan’s Taiex Index subtracted 15.47 points, or 0.2%, to 8.951.19
Singapore’s Straits Times Index moved higher 2.03 points to 3,255.83
Korea’s Kospi Index faded 5.06 points, or 0.3%, to 1,999.22
