Asia report: Nikkei slides again on mixed day for region
Asia-Pacific markets ended mixed on Friday, as renewed US-China trade tensions fuelled investor caution.
Japanese equities suffered steep losses, while Chinese and Hong Kong stocks gained, after the White House confirmed overnight that the cumulative tariff on Chinese imports to the US would now stand at 145%.
“Asian markets are poised for a third consecutive week of declines as initial relief turned to concern following the White House's announcement that US tariffs on China have increased to 145%,” said TickMill market strategy partner Patrick Munnelly.
“US Treasury bonds have continued their downward trend this week; the dollar has continued to decline after experiencing its most significant drop in three years.
“Both stocks and bonds fell due to an escalating global trade dispute, which has further dampened an already weak risk appetite.”
Munnelly noted that in contrast, the euro rose by up to 1.6%, the yen strengthened, and gold reached an all-time high, reflecting investors' shift towards safe havens and alternatives outside the US.
“Currencies from emerging markets appreciated against the dollar, including the Korean won and Thai baht.
“A metric for emerging market currencies rose by nearly 0.6%, aiming for its highest trading day since August.
“The surge in the yen pushed the Japanese currency to around 140 on Friday, a rate not seen since October.”
Tokyo’s bourse slides on mixed day for region
Japan's Nikkei 225 plunged 2.96% to 33,585.58, while the broader Topix index fell 2.85% to 2,466.91.
Major Japanese exporters were hit hard, with Kao Corporation down 7.56%, Sony losing 7.4%, and Seiko Epson falling 6.74%.
The pullback in Japan contrasted with gains in China, where the Shanghai Composite rose 0.45% to 3,238.23 and the Shenzhen Component added 0.82% to 9,834.44.
Stocks such as Yunnan Metropolitan Real Estate Development, HNA Technology, and Markor International Home Furnishings surged over 10%.
The market appeared resilient despite China's announcement of retaliatory tariffs on US goods, raising the cumulative rate to 125%.
In Hong Kong, the Hang Seng Index advanced 1.13% to 20,914.69, supported by strong performances from BYD, SMIC, and Geely Automobile, which rose between 5.9% and 7.15%.
South Korea’s Kospi 100 fell 1.03% to 2,424.08, weighed down by heavy losses in major industrial stocks.
Kia Corporation dropped 7.03%, while Hyundai Glovis and POSCO Future M fell over 5%.
Australia’s S&P/ASX 200 declined 0.82% to 7,646.50, led lower by biotech and tech names.
Mesoblast slumped 9.22%, with Tabcorp and Nuix also posting significant losses.
New Zealand’s S&P/NZX 50 lost 1.49% to close at 12,019.13.
EBOS Group, KMD Brands, and Pacific Edge were among the session’s weakest performers.
In currency markets, the dollar was last down 1.4% on the yen, trading at JPY 142.43, as it also weakened 0.96% against the Kiwi to NZD 1.7258.
The greenback was, however, stronger on the Aussie, rising 0.32% to change hands at AUD 1.6119.
Oil prices were marginally higher, with Brent crude futures last up 0.02% on ICE at $63.34 per barrel, and the NYMEX quote for West Texas Intermediate ahead 0.17% at $60.17.
PBoC reaffirms ‘moderately loose’ policy, NZ manufacturing expansion narrows slightly
In economic news, China’s central bank reaffirmed its commitment to maintaining a “moderately loose” monetary policy as the country braced for rising global uncertainty tied to escalating trade tensions.
In a statement released on Friday, the People’s Bank of China said it would continue supporting financial stability and the broader economic recovery.
Deputy governor Xuan Changneng underscored these priorities during a meeting this week with finance officials from Japan and South Korea, held alongside a broader regional summit in Malaysia involving ASEAN nations.
In New Zealand, manufacturing activity remained in expansion territory for a third straight month in March.
The BusinessNZ-BNZ performance of manufacturing index (PMI) came in at 53.2, slightly lower than February’s 53.9 but still indicating sector growth.
BusinessNZ’s Catherine Beard noted that most sub-indices stayed in expansion, reflecting continued underlying strength.
However, BNZ senior economist Doug Steel warned that the outlook was clouded by growing global trade risks, with recent tariff escalations threatening to dampen both global and domestic growth momentum.
The data, although positive, was collected before the latest US tariff developments.
Reporting by Josh White for Sharecast.com.