Asian stock markets are mixed on Tuesday
with investors treading cautiously following the lackluster cues overnight from
Wall Street amid uncertainty about a potential U.S.-China trade deal and an
escalation of violence in Hong Kong. Investors also looked ahead to a speech by
U.S. President Donald Trump at the Economic Club of New York later in the day.
Trump wrongfooted markets over the weekend
when he said there had been incorrect reporting about U.S. willingness to lift
tariffs on China. On a more positive note, Politico reported Trump would
announce this week that he is delaying a decision on whether to slap tariffs on
imported European Union autos for another six months.
Mainland Chinese shares were lower by the
afternoon as the Shenzhen component fell 0.1% and the Shenzhen composite
declined 0.4%. Meanwhile, market movements in Hong Kong continue to be
monitored, as the Hang Seng index rose 0.3% with shares of Chinese tech giant
Tencent gaining more than 1%. Japan’s Nikkei 225 was 0.8% higher in afternoon
trade while the Topix index gained 0.2%.
In currency markets, the main action was in
sterling which hit a six-month high on the euro after the Brexit Party said it
would not contest previously Conservative held seats in the UK election. The
U.S. dollar index, which tracks the greenback against a basket of its peers,
was last at 98.226 after seeing levels above 98.3 yesterday.
Spot gold suffered a third day of declines,
to touch its lowest since early August at $1,453.65. Oil prices edged lower as
the lack of progress on U.S.-China trade negotiations kept prices pressured,
though bullish inventory data offered some support.