Asian stock markets were mixed early Wednesday, as rising oil prices and trade tensions continued to set the tone for trading
In Japan, the Nikkei 225 fell 70.23 points, or 0.3%, to 22,271.77, with oil consumers lagging on crude’s overnight pop following a U.S. official’s comments warning the world to end Iranian oil imports or face sanctions. Major shipper Mitsui was down 3.4% while airline operator fell 1.6%.
Conversely, energy stocks were up with oil explorer Japan Petroleum Exploration rising 1.9% and distributor JXTG climbing 2%.
Against the yen, the U.S. dollar softened to trade at 109.80 after trading around the 110 handle on Tuesday.
In Hong Kong, the Hang Seng tumbled 525.14 points, or 1.8%, to 28,356.26. Insurer AIA was 0.4% higher, while energy stocks jumped, with CNOOC 5.7% higher and PetroChina up 1.9%.
In Korea, indices slumps as gains in blue-chip technology stocks failed to buoy the broader index amid declines in other sectors, including automakers and manufacturing names. Index heavyweight Samsung Electronics jumped 2%, and and SK Hynix improved 1.1%, while Posco dropped 3.2%.
In Australia, indexers faded slightly, as the energy sector sub-index rose 1.2% as oil producers gained, with Woodside Petroleum adding 1.4% and Santos advancing 2.2%. Still, overall gains were capped as banks and telecommunications stocks slipped.
CHINA
In Shanghai, the CSI 300 slid 71.85 points, or 2%, to 3,459.26
China’s largest steel-trading platform filed an IPO application in Hong Kong, with Zhaogang.com said to be seeking to raise around $500 million U.S. The move marks the third major Chinese company with a dual-class structure to seek a listing in Hong Kong following recent rule changes, following smartphone maker Xiaomi and Chinese tech startup Meituan.
The declines in China on Wednesday eclipsed the continued gains in oil after prices jumped overnight. Contributing to oil's gains was the U.S. State Department's announcement that companies purchasing Iranian oil would be subject to sanctions if they did not completely slash those imports by November.
Meanwhile, the yuan extended its losses to a six-month low on Wednesday. The onshore yuan traded at 6.5930 to the U.S. dollar. The People's Bank of China had set the official midpoint at 6.5569 per dollar before the market open. The central bank allows the yuan spot rate to rise and fall a maximum of 2% against the dollar relative to the fixing rate.
In other markets
In Singapore, the Straits Times Index slumped 26.1 points, or 0.8%, to 3,254.77
The Taiex index slouched 41.14 points, or 0.4%, to 10,701.03
In Korea, the Kospi index stepped back 8.89 points, or 0.4%, to 2,342.03
In New Zealand, the NZX 50 inched up 6.73 points, or 0.1%, to 8,996.51
In Australia, the ASX 200 faded 1.75 points to 6,195.86
