By Associated Press and Marketwatch
Kyodo News via Getty Images
Asian shares finished mixed Friday, with Japan stocks leading decliners as trade worries continued after President Donald Trump announced additional tariffs on imports from Mexico.
Japan’s benchmark Nikkei 225 /zigman2/quotes/210597971/delayed JP:NIK -0.66% closed down 1.6%, weighed as the yen climbed against rivals, up 0.7% against the dollar /zigman2/quotes/210561789/realtime/sampled USDJPY +0.0607% .
Hong Kong’s Hang Seng /zigman2/quotes/210598030/delayed HK:HSI -2.19% closed down 0.8% and the Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP -0.57% lost 0.2% after a report found China’s manufacturing activity contracted in May as the trade war with the U.S. took its toll
Elsewhere, Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO -2.31% finished flat, while South Korea’s Kospi /zigman2/quotes/210598069/delayed KR:180721 +0.08% gained 0.1%. Stocks rallied 1.1% in Taiwan /zigman2/quotes/210597977/delayed TW:Y9999 -0.46% , 2% in Indonesia /zigman2/quotes/210597981/delayed ID:JAKIDX -1.61% , but fell in 0.8% in Singapore /zigman2/quotes/210597985/delayed SG:STI -1.65% .
Among individual stocks, Japanese auto makers that have factories in Mexico — such as Toyota /zigman2/quotes/203803129/delayed JP:7203 +0.30% , Honda /zigman2/quotes/200490352/delayed JP:7267 -3.27% and Mazda /zigman2/quotes/204777714/delayed JP:7261 -4.27% — tumbled in Tokyo trading after Trump announced his new tariffs. Oil producer Inpex /zigman2/quotes/206689846/delayed JP:1605 +0.87% also fell. In Hong Kong, Tencent /zigman2/quotes/204605823/delayed HK:700 -1.53% and Sunny Optical /zigman2/quotes/206687505/delayed HK:2382 -0.10% gained while property names such as Wharf Real Estate /zigman2/quotes/205885756/delayed HK:1997 -4.55% and New World Development /zigman2/quotes/202357413/delayed HK:17 +0.48% fell. Auto makers Hyundai Motor /zigman2/quotes/206684590/delayed KR:005380 -0.59% and Kia /zigman2/quotes/206019389/delayed KR:000270 -0.20% declined in South Korea, while Taiwan Semiconductor /zigman2/quotes/207385621/delayed TW:2330 -0.91% gained in Taiwan. Beach Energy /zigman2/quotes/200513631/delayed AU:BPT 0.00% and Westpac Banking /zigman2/quotes/203084975/delayed AU:WBC -4.25% slipped in Australia.
Major U.S. stock indexes capped a day of listless trading with modest gains Thursday, snapping the market’s two-day losing streak. But Friday was setting up for a weaker day. Dow Jones Industrial Average futures /zigman2/quotes/210407078/delayed YM00 +0.94% , S&P 500 futures /zigman2/quotes/209948968/delayed ES00 +0.97% and Nasdaq futures /zigman2/quotes/210219788/delayed NQ00 +0.92% tumbled immediately after Trump’s announcement.
Trump announced a new 5% tariff on all Mexican goods late Thursday to halt the flow of migrants into the U.S. The tariff, to be effective June 10, would increase each month if Trump is not satisfied by Mexico’s efforts on border security.
“Early expectations for the temporary relief on Wall Street to spread to Asia markets into Friday had once again been derailed with more confrontation trade policies out of the U.S., one to throw markets into a risk-off mode again,” says Jingyi Pan, market strategist at IG in Singapore.
Trade concerns are likely to continue through late June, when U.S. and Chinese leaders will have an opportunity to meet at the G20 summit in Japan.
In early May the U.S. and China concluded their 11th round of trade talks with no agreement. The U.S. then more than doubled duties on $200 billion in Chinese imports, and China responded by raising its own tariffs.
Benchmark U.S. crude fell $1.27 to $55.30 a barrel. It skidded 3.8% to settle at $56.59 a barrel Thursday. Brent crude oil , the international standard, slipped $1.80 to $63.98 per barrel.
The dollar fell to 108.86 Japanese yen from 109.69 yen on Thursday.