Asian markets are trading broadly lower Wednesday morning as the trade tensions between the U.S. and China have escalated in the days ahead of the next round of trade talks between the two superpowers.
Japan’s Nikkei is trading lower by 0.9% despite a weaker yen. Financials, which gained in the previous session in response to rising long-term U.S. Treasury yields, are giving back those gains today, with both Mitsubishi UFJ and Dai-ichi Life trading 1.1% lower. Shares of Softbank are up 0.3%, and Nintendo is gaining 0.3% as well.
In Australia, the S&P/ASX 200 has a loss of 0.8%, with the big four banks contributing heavily to losses. Shares of ANZ are down 1.3%, while NAB has fallen 0.7%, Commonwealth trades 0.9% lower, and Westpac has a 1.1% loss. Miners are also lower, with BHP off by 0.9% and Rio Tinto down 0.7%. Some of the worst losses are coming from the oil sector though, due to continued losses for crude. Woodside Petroleum and Oil Search are both trading down by 1.8%, while Beach Energy has a loss of 2.2%.
Mainland China is seeing broad-based losses as well, with the Shanghai Composite trading 0.5% lower and the smaller-cap Shenzhen Composite losing 0.4%. Over in Hong Kong, the Hang Seng has lost 0.5% as well in early trade.
Taiwan’s Taiex has a 0.6% loss, while South Korea’s markets are closed for a public holiday.
In Southeast Asia, both the KLCI in Malaysia and the Straits Times in Singapore are 0.5% lower.