By Dow Jones Newswire
Asian exporters took a heavy hit Tuesday, with China stocks suffering their lowest close in two years, following President Donald Trump’s announcement of potentially $400 billion in additional tariffs against imports from that country.
In Japan, the yen jumped on that news, leaving the Nikkei /zigman2/quotes/210597971/delayed JP:NIK +0.34% to finish down 1.8%. Export-related stocks slid, with Komatsu /zigman2/quotes/204002437/delayed JP:6301 +0.13% shedding 2.5% while Honda /zigman2/quotes/200490352/delayed JP:7267 +2.22% slumped 1.6%. The dollar /zigman2/quotes/210561789/realtime/sampled USDJPY +0.6771% was down 0.7% versus the yen at ¥109.77.
China stocks closed at their worst levels since June 2016 following Monday’s holiday and amid increased trade tensions with the U.S. The Shanghai Composite /zigman2/quotes/210598127/delayed CN:SHCOMP +1.84% fell 3.8% to and the Shenzhen Composite /zigman2/quotes/210598015/delayed CN:399106 +2.15% slid 6% to 1,666.66, its worst finish since September 2015.
ZTE Corp. /zigman2/quotes/209674390/delayed CN:000063 +2.08% slid 25% on Tuesday after the U.S. Senate late Monday passed legislation to reinstate a ban on the selling of U.S. components to the Chinese telecommunications company.
Meanwhile, Chinese smartphone maker Xiaomi Corp. has decided to put off a widely anticipated initial public offering in mainland China, without giving a reason .
IPhone-camera maker Cowell E Holdings /zigman2/quotes/204953098/delayed HK:1415 +2.00% slumped 12% in Hong Kong to fresh record lows, while smartphone-lens maker Sunny Optical /zigman2/quotes/206687505/delayed HK:2382 +1.08% pulled back 5.3% and acoustics firm AAC Technologies /zigman2/quotes/201441510/delayed HK:2018 +0.62% dropped 3.3%. In Taiwan, Sunny peer Largan Precision /zigman2/quotes/210444196/delayed TW:3008 -0.74% ended down 5.2%. Apple product assembler Hon Hai Precision Industry /zigman2/quotes/207256514/delayed TW:2317 -1.19% dropped 2.4%.
The Hong Kong Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -0.17% closed down 2.8%, led by a 5.7% drop for Hong Kong-listed Chinese pork producer WH Group /zigman2/quotes/204247792/delayed HK:288 +0.70% , which owns U.S.’s Smithfield Foods and is vulnerable to potential pork and soybean tariffs. Taiwan’s TAIEX slid 1.7%.
Meanwhile, Australia’s S&P/ASX 200 /zigman2/quotes/210598100/delayed AU:XJO +0.25% finished flat, as the Aussie dollar eased on global trade tensions. Korea’s benchmark /zigman2/quotes/210598069/delayed KR:180721 -0.67% dropped 1.5% and New Zealand’s NZX /zigman2/quotes/211587880/delayed NZ:NZ50GR +0.70% fell 1.2%.
From Tokyo, came one bright spot for otherwise battered Asian markets, with flea-market app Mercari Inc. /zigman2/quotes/206957726/delayed JP:4385 -2.20% , closing up 77% over the offering price in To kyo, bringing its valuation to around $6.5 billion.
— Saumya Vaishampayan contributed to this report