ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Nikkei Markets

Asian equities little changed amid global growth worries

Chinese carmakers gain while Tencent and Air China decline

HONG KONG (Nikkei Markets) -- Asian shares outside of Japan ended little changed on Wednesday on worries over the growth outlook amid a further inversion in the U.S. Treasury yield curve.

The Nikkei Asia300 Index closed at 1,217.01, barely changed from yesterday's close of 1,217.03.

Two factors are currently at the center of moves in risk assets: developments on the U.S.-China trade feud and the shape of the Treasury yield curve. After Beijing and Washington slapped a new round of tariffs on each other's shipments last Friday, investors have had to contend with conflicting messages. President Donald Trump and U.S. Treasury Secretary Steven Mnuchin have indicated there has been contact between officials of the two countries since then, but Beijing has denied any interaction. China's foreign ministry reiterated yesterday it had not heard of any recent telephone call and said it hopes Washington can stop its wrong actions and create conditions for talks, Reuters reported.

The U.S. has said that with effect from Sept. 1, it will be imposing tariffs on additional Chinese goods and Beijing in response will be levying new tariffs on $75 billion of American goods.

Meanwhile, the Treasury yield curve is moving further into inversion territory, indicating that investors are worried about where growth is headed amid mounting trade concerns. The yield demanded by traders on the 10-year Treasury benchmark bond was around four basis points less than that of the 2-year note, an indicator that the economy is expected to slow down.

Capital Economics said it continues to expect that equities "will struggle much more over the rest of the year as investors adjust to the prospect of a long trade war and more weakness in the global economy."

Chinese carmakers were among the top performers on the A300 on Wednesday. Great Wall Motor rose 2.2% and Guangzhou Automobile Group added 1.7%. China's cabinet on Tuesday announced it is exploring methods to boost consumption in Asia's largest economy, including easing restrictions on car purchases.

Among prominent losers on the gauge, heavyweight Tencent Holdings declined 2.2% and Air China closed 0.6% lower.

Hyundai Motor ended 2% higher. The company and its South Korean union reached a tentative wage deal without resorting to a strike for the first time in eight years, Reuters reported, citing a union spokesman.

Chinese telecommunications-equipment maker ZTE climbed 1% after reporting a profit for the first half of the year, compared with a loss a year earlier. Revenue for the period rose 13.1%.

Chinese conglomerate Fosun International jumped 4% following a 10.9% year-on-year increase in first-half profit and a 57.4% surge in revenue.

Telekom Malaysia added 3.3% after reporting a 12% increases in second-quarter net profit.

MMC climbed 0.9% after the Malaysian utility and infrastructure conglomerate reported a three-fold jump in second quarter net profit.

Hong Leong Financial Group declined 1.2%. The Malaysian financial conglomerate reported a 3% increases in fourth-quarter net profit.

--Nimesh Vora

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends June 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media