Asian stocks deepened their losses on Thursday, with major markets finishing the session lower as investors remained cautious the day before tariffs from the U.S. and China are due to be implemented.
In Japan, the Nikkei 225 dropped 170.05 points, or 0.8%, to 21.546.00, notching a fourth consecutive session of declines. Oil producers and retailers were among the worst-performers in Tokyo, with index heavyweight Fast Retailing slumping 2.5%.
Against the yen, the U.S. dollar traded at 110.55, below levels around the 110.8 handle seen at beginning of the week.
In Hong Kong, the Hang Seng fell back 59.38 points, or 0.2%, to 28,182.09, with the materials and services sectors among the worst-performing during afternoon trade. Heavily weighted financials stocks eased 0.9%
Korean markets took their lumps, as heavyweight Samsung Electronics declined 0.7%, although other tech plays finished higher. Construction names also logged declines, with Hyundai Engineering & Construction tumbling 4%
Australian indexes bucked the trend to close higher, with the financials sub-index rising 1%
CHINA
In Shanghai, the CSI 300 descended 21.31 points, or 0.6%, to 3,342.44.
In corporate news, the HNA Group Chairman Wang Jian passed away in an accident while on a business trip in France, the company said. Wang had a 15% stake in the group, formerly one of China's most acquisitive companies.
In currencies, the yuan was steady after notching an 11-month low against the U.S. dollar earlier this week. The stabilization in the currency came after the People's Bank of China reassured markets about the currency. The on-shore yuan traded at 6.6289 to the dollar, compared to Wednesday's close of 6.6330.
Concerns over a trade dispute between the U.S. and China have weighed on market sentiment in the lead-up to tariffs both countries say will take effect on July 6. The Trump administration has levied a 25% tariff on $34 billion in Chinese goods, while the Chinese government has retaliated by announcing tariffs on the same value of U.S. goods.
Due to the time difference, duties imposed by Beijing would likely take effect before Washington's tariffs on Friday. China's finance ministry, however, has said that it "absolutely will not fire the first shot" in its trade spat with the U.S.
Although the economic impact of the first wave of tariffs is relatively small, investors have been nervous over potential retaliation, which could cause the spat to evolve into a trade war.
In other markets
In Singapore, the Straits Times Index gained 11.82 points, or 0.4%, to 3,256.71
The Taiex index slumped 110.06 points, or 1%, to 10,611.81
In Korea, the Kospi index slid 7.91 points, or 0.4%, to 2,257.55
In New Zealand, the NZX 50 recovered 37.21 points, or 0.4%, to 9,062.85
In Australia, the ASX 200 revived 32.13 points, or 0.5%, to 6,215.52
