By Marketwatch and Associated Press
Shares fell in Asia on Tuesday, backtracking from Monday’s rally spurred by news that President Donald Trump had pushed back a deadline for raising tariffs on imports from China to allow time for more negotiations.
Mainland China indexes had gotten an earlier boost on a report in the Hong Kong newspaper South China Morning Post reported that a deputy chairman of the Banking Regulatory Commission, Wang Zhaoxing, had said risks from soaring debt had been contained.
The Shanghai Composite index /zigman2/quotes/210598127/delayed CN:SHCOMP -0.60% closed down 0.7%, while Japan’s Nikkei 225 index /zigman2/quotes/210597971/delayed JP:NIK -3.34% lost 0.4%. Hong Kong’s Hang Seng index /zigman2/quotes/210598030/delayed HK:HSI +0.27% fell 0.6%. The benchmark index in Taiwan was flat, while Singapore /zigman2/quotes/210597985/delayed SG:STI +0.51% shares fell.
Australia’s ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -1.60% dropped 0.9% as falling prices for oil and other commodities hit energy companies such as Santos /zigman2/quotes/207349564/delayed AU:STO -2.04% and Oil Search /zigman2/quotes/204702973/delayed AU:OSH -2.28% .
Among individual stocks, oil producer Inpex /zigman2/quotes/206689846/delayed JP:1605 -4.63% tumbled in Tokyo trading while Mitsubishi UFJ /zigman2/quotes/207520099/delayed JP:8306 -1.77% and Hitachi /zigman2/quotes/203839937/delayed JP:6501 -3.78% declined as well. AAC /zigman2/quotes/201441510/delayed HK:2018 +2.15% plunged in Hong Kong /zigman2/quotes/203421416/delayed HK:883 -1.53% after the Apple /zigman2/quotes/202934861/composite AAPL -4.75% supplier warned that first-quarter net profits may fall as much as 75%. CNOOC and Galaxy Entertainment /zigman2/quotes/202884203/delayed HK:27 +1.30% also fell. Samsung /zigman2/quotes/209800866/delayed KR:005930 +1.94% and SK Hynix /zigman2/quotes/206420319/delayed KR:000660 -1.51% slipped in Korea.
Overnight, stocks closed modestly higher after shedding most of their gains from an early rally spurred by the Trump administration’s decision to hold off on a March 2 increase in punitive duties on $200 billion worth of Chinese imports.
Investors welcomed the move, which averted an escalation in the damaging trade war between the world’s two largest economies. The fight is over U.S. complaints that Beijing steals technology or pressures companies to hand it over.
But many questions remain about the prospects for a deal that would unwind the tariffs already slapped by both sides on billions of dollars of each other’s goods. Trump’s conflicting comments on the status of the talks have added to the uncertainty, said Jingyi Pan of IG.
“As it is, we continue to view the trade matter through an opaque screen and make assumptions from the shadows of President Donald Trump,” Pan said in a commentary.
The S&P 500 index /zigman2/quotes/210599714/realtime SPX -3.35% added 0.1% to 2,796.11. The Dow Jones Industrial average /zigman2/quotes/210598065/realtime DJIA -3.56% gained 0.2% to 26,091.95, while the Nasdaq Composite /zigman2/quotes/210598365/realtime COMP -3.71% rose 0.4% to 7,554.46. The Russell 2000 index /zigman2/quotes/210598147/delayed RUT -3.01% of smaller companies dropped 0.1% to 1,588.81.
Elsewhere in Asia, South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +1.18% slipped 0.3% and India’s Sensex /zigman2/quotes/210597966/delayed IN:1 -0.20% fell 0.7% amid mounting tensions with Pakistan. Shares were lower in Southeast Asia.
Pakistan’s military spokesman tweeted that Indian aircraft crossed into Pakistan and then “released payload in haste,” but said there were no casualties. The Indian side had no immediate comment.
U.S. crude oil rose 12 cents to $55.62 per barrel in electronic trading on the New York Mercantile Exchange. It lost 3.1% to settle at $55.48 a barrel in New York after Trump criticized rising oil prices in an early morning tweet. Brent crude dropped added 54 cents to $65.31 per barrel.
The dollar /zigman2/quotes/210561789/realtime/sampled USDJPY -0.0804% fell to 110.84 yen from 111.04 yen on Monday. The euro /zigman2/quotes/210561242/realtime/sampled EURUSD -0.1382% strengthened to $1.1361 from $1.1356.