CANBERA (dpa-AFX) - Asian stock markets are mostly lower on Monday, while the safe-haven yen strengthened following the sell-off on Wall Street Friday as escalating global trade tensions raised worries about global economic growth.
In addition to the U.S.-China trade war, U.S. President Donald Trump's decision to impose a 5 percent tariff on all Mexican imports from June 10 weighed on investor sentiment. Trump also said he has decided to end preferential trade treatment for India from June 5.
The Australian market is declining following the sell-off on Wall Street and the plunge in oil prices amid worries of global trade after Trump announced tariffs on Mexican goods.
The benchmark S&P/ASX 200 Index is losing 39.60 points or 0.62 percent to 6,357.30, after touching a low of 6,352.40 earlier. The broader All Ordinaries Index is lower by 41.00 points or 0.63 percent to 6,450.80. Australian stocks closed lower on Thursday.
Oil stocks are weak after crude oil prices tumbled to a near 16-week low on Friday. Woodside Petroleum is lower by more than 2 percent, Oil Search is losing 2 percent and Santos is declining almost 2 percent.
The major miners are also lower. Rio Tinto and BHP Group are declining more than 1 percent each, while Fortescue Metals is losing almost 2 percent.
Among the big four banks, National Australia Bank, Commonwealth Bank and Westpac are down in a range of 0.2 percent to 0.8 percent.
ANZ Banking said it has completed the A$2.85 billion sale of its Australian life insurance business, OnePath Life, to Zurich Insurance Group. The bank's shares are lower by 0.7 percent.
Among tech stocks, Afterpay Touch Group is losing almost 3 percent, Altium is declining more than 1 percent and WiseTech Global is down 0.4 percent.
Bucking the trend, gold miners are higher after gold prices rose to a seven-week high. Evolution Mining is advancing 2 percent and Newcrest Mining is rising more than 3 percent.
Qantas said it has asked Boeing and Airbus to present their 'best and final offer' by August for aircraft capable of flying 21 hours non-stop from Sydney to London. The airline's shares are declining more than 1 percent.
Wellard said its founder Mauro Balzarini has ceased the role of chief executive, but did not give a reason for the move. Balzarini will remain a non-executive director. The cattle exporter's shares are unchanged.
In economic news, the latest survey from the Australian Industry Group revealed that the manufacturing sector in Australia continued to expand in May, albeit at a slower rate, with a Performance of Manufacturing Index score of 52.7. That's down from 54.8 in April, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction.
Australia will also see today May results for the inflation forecast from TD Securities and for job advertisements from ANZ, as well as first-quarter numbers for company operating profits and inventories.
In the currency market, the Australian dollar is higher against the U.S dollar on Monday. The local currency was quoted at $0.6938, compared to $0.6914 on Friday.
The Japanese market is notably lower while the safe-haven yen strengthened following the negative cues from Wall Street and the fall in crude oil prices amid rising global trade tensions.
The benchmark Nikkei 225 Index is losing 229.04 points or 1.11 percent to 20,372.15, after falling to a low of 20,305.74 in early trades. Japanese shares tumbled on Friday.
The major exporters are lower as the yen strengthened. Panasonic is down 0.4 percent, Sony is declining 0.6 percent, Canon is losing almost 1 percent and Mitsubishi Electric is lower by more than 1 percent.
Index heavyweight Softbank Group is losing almost 5 percent, Fanuc is declining more than 2 percent and Fast Retailing is edging lower by 0.1 percent.
In the auto space, Toyota Motor is declining more than 1 percent and Honda Motor is down 0.5 percent. Among tech stocks, Advantest is declining more than 1 percent and Tokyo Electron is lower by almost 3 percent.
Among the major banks, Mitsubishi UFJ Financial is down 1 percent and Sumitomo Mitsui Financial is lower by more than 1 percent. In the oil sector, Inpex is losing almost 2 percent and Japan Petroluem is declining more than 3 percent.
Among the few major gainers, Tokyo Electric Power, Tokyu Corp., Kikkoman Corp. and Kansai Electric Power are higher by more than 2 percent each.
On the flip side, Creit Saison is losing more than 6 percent, JGC Corp. is lower by 5 percent and Okuma Corp. is down almost 5 percent.
In economic news, the latest survey from Nikkei revealed that the manufacturing sector in Japan fell into contraction in May, with a manufacturing PMI score of 49.8. That's down from 50.2 in April, and it slips beneath the boom-or-bust line of 50 that separates expansion from contraction.
Japan will also release first-quarter figures for capital spending and company profits today.
In the currency market, the U.S. dollar is trading in the lower 108 yen-range on Monday.
Elsewhere in Asia, Shanghai, Singapore, Hong Kong, Malaysia and Taiwan are also lower, while South Korea is higher. The New Zealand market is closed on Monday for the Queen's birthday, while the Indonesia market is closed all week in observance of Eid-ul-Fitr.
On Wall Street, stocks closed sharply lower on Friday after U.S. President Donald Trump revealed plans to use tariffs to compel Mexico to make efforts to stop the flow of illegal immigrants across the country and into the U.S. The threat of new tariffs on Mexican imports comes amid the escalating trade dispute between the U.S. and China, which has recently weighed on stocks and raised concerns about the global economic outlook.
The Dow tumbled 354.84 points or 1.4 percent to 24,815.04, the Nasdaq plunged 114.57 points or 1.5 percent to 7,453.15 and the S&P 500 slumped 36.80 points or 1.3 percent to 2,752.06.
The major European markets also moved to the downside on Friday. While the German DAX Index tumbled by 1.5 percent, the French CAC 40 Index and the U.K.'s FTSE 100 Index both slid by 0.8 percent.
Crude oil prices plunged sharply on Friday as concerns about outlook for energy demand rose amid growing worries about trade dispute. WTI crude for July delivery plunged $3.09 or 5.5 percent to $53.50 a barrel on the New York Mercantile Exchange.
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