Asian stocks closed in negative territory on Wednesday, with China markets failing to sustain gains notched in the last session as trade jitters continued to simmer ahead of a deadline when tariffs are due to take effect.
In Japan, the Nikkei 225 let go of 68.5 points, or 0.3%, to 21.717.04, notching a third consecutive session of declines. The electric appliances sector was among the worst performing, sliding 1.9% by the end of the day. Semiconductor industry plays also sank, with Tokyo Electron down 4.4%, while utilities and mining names gained.
Meanwhile, the U.S. dollar softened after its recent gains. Against the yen, the dollar traded at 110.35
In Hong Kong, the Hang Seng plummeted 303.9 points, or 1.1%, to 28,241.67, extending the previous session's losses, with the heaviest declines seen in the energy and real estate sectors.
In individual movers, shares of ZTE fell 2% in Hong Kong after rising more than 7% on Tuesday. The company, which has faced U.S. sanctions since April, is getting some relief from the U.S. government, which authorized the telecommunications equipment maker to carry out limited business.Shenzhen shares rose 2.6% by the end of the day.
Apart from China, the U.S. is also engaged in disputes with several other trading partners, including Canada, Mexico and the European Union. The countries have either begun imposing or are due to start implementing duties on U.S. goods after being on the receiving end of the Trump administration's decision to slap tariffs on steel and aluminum imports.
CHINA
In Shanghai, the CSI 300 fell back 45.53 points, or 1.3%, to 3,363.75.
Investor concerns over trade have intensified this week as they await U.S. tariffs on $34 billion in Chinese products, which are set to kick in on Friday. The Chinese government has announced duties of its own that will target the same value of U.S. goods.
Technology underperformed stateside, with semiconductors leading the move lower. Idaho-based semiconductor maker Micron finished the session down 5.5% after dropping as much as 8%. Those moves came as a Chinese court temporarily prohibited the sale of Micron chips in the local market, Bloomberg reported, citing a statement from Taiwan's United Microelectronics.
The yuan, meanwhile, stabilized after a recent bout of weakness, which overnight saw the currency touch its lowest levels against the dollar in around 11 months. Weakness in the currency seen from the middle of last month came amid worries that the trade spat between the U.S. and China could spiral into a trade war with more serious consequences.
The yuan traded at 6.6035 to the dollar, around 0.5% firmer than the last close. China's central bank had sought to calm markets on Tuesday, with People's Bank of China Governor Yi Gang stating that the bank would keep the yuan at a reasonable level.
In other markets
In Singapore, the Straits Times Index regained 8.99 points, or 0.3%, to 3,244.89
The Taiex index gained back 8.99 points, or 0.3%, to 10,721.87
In Korea, the Kospi index slid 7.3 points, or 0.3%, to 2,265.46
In New Zealand, the NZX 50 dropped 27.95 points, or 0.3%, to 9,025.64
In Australia, the ASX 200 subtracted 26.82 points, or 0.4%, to 6,183.39
