CANBERA (dpa-AFX) - Asian stock markets are mostly lower on Wednesday after U.S. President Donald Trump threatened higher tariffs on Chinese goods if a trade deal is not reached between the two economic powerhouses.
News that the U.S. Senate passed legislation supporting protesters in Hong Kong also weighed on the markets. China has condemned the U.S. Senate measure.
The Australian market is notably lower after Trump threatened higher tariffs on Chinese goods if a trade agreement is not reached. The fall in crude oil prices dragged down oil stocks.
The benchmark S&P/ASX 200 Index is losing 72.60 points or 1.07 percent to 6,741.60, after touching a low of 6,739.80 earlier. The broader All Ordinaries Index is down 70.60 points or 1.02 percent to 6,843.50. Australian stocks closed higher on Tuesday.
In the banking space, Westpac's shares are losing more than 2 percent after AUSTRAC, Australia's financial intelligence agency, accused the lender of breaching anti-money laundering and counter-terrorism financing 23 million times.
ANZ Banking, Commonwealth Bank and National Australia Bank are lower in a range of 1.0 percent to 1.4 percent.
The major miners are also lower. BHP and Rio Tinto are declining almost 1 percent each, while Fortescue Metals is edging down 0.1 percent.
Oil stocks are weak after crude oil prices tumbled overnight. Oil Search is losing almost 2 percent, while Santos and Woodside Petroleum are declining more than 1 percent each.
Origin Energy raised the full-year production outlook for its Australia Pacific LNG project. However, the company's shares are lower by more than 1 percent.
Among gold miners, Newcrest Mining is losing more than 1 percent, while Evolution Mining is adding 0.2 percent after gold prices rose modestly overnight.
Aristocrat Leisure reported a 29 percent increase in full-year profit and said it will pay a higher fully franked final dividend. The gambling giant's shares are gaining more than 5 percent.
On the economic front, Australia will see October results for skilled vacancies and for the leading economic index from Westpac today.
In the currency market, the Australian dollar is lower against the U.S. dollar on Wednesday. The local currency was quoted at $0.6822, compared to $0.6798 on Tuesday.
The Japanese market is extending losses from the previous session and the safe-haven yen strengthened after Trump threatened higher tariffs on Chinese goods if a trade deal is not reached. Investors also digested data that showed Japan's merchandise trade surplus for October missed expectations.
The benchmark Nikkei 225 Index is losing 158.24 points or 0.68 percent to 23,134.41, after falling to a low of 23,095.36 earlier. Japanese shares closed lower on Tuesday.
Market heavyweight SoftBank Group is down 0.2 percent and Fast Retailing is declining almost 1 percent.
The major exporters are lower on a stronger yen. Sony is losing 0.6 percent, Canon is lower by 0.5 percent, Mitsubishi Electric is declining 0.3 percent and Panasonic is edging down 0.1 percent.
In the tech space, Tokyo Electron is declining 0.6 percent and Advantest is down 0.2 percent. Among auto stocks, Toyota Motor and Honda Motor are losing almost 1 percent each.
In the oil sector, Inpex is lower by almost 2 percent and Japan Petroleum is falling more than 2 percent after crude oil prices tumbled overnight.
Among the major gainers, Sumitomo Dainippon Pharma is gaining more than 4 percent, GS Yuasa is rising more than 3 percent and Sumitomo Metal Mining is higher by almost 3 percent.
On the flip side, Z Holdings and Mitsui OSK Lines are losing almost 4 percent each, while Nippon Yusen KK is lower by more than 3 percent.
In economic news, the Ministry of Finance said that Japan posted a merchandise trade surplus of 17.3 billion yen in October. That was well shy of expectations for a surplus of 301.0 billion yen following the 124.8 billion yen deficit in September.
Exports fell 9.2 percent on year, missing forecasts for a drop of 7.5 percent following the 5.2 percent decline in the previous month. Imports were down an annual 14.8 percent versus expectations for a drop of 15.4 percent after dipping 1.5 percent a month earlier.
In the currency market, the U.S. dollar is trading in the mid 108 yen-range on Wednesday.
Elsewhere in Asia, South Korea and Hong Kong are declining almost 1 percent each, while Shanghai, Singapore, Taiwan, Indonesia and Malaysia are also lower. Bucking the trend, New Zealand is higher, while Indonesia is little changed.
On Wall Street, stocks closed mixed on Tuesday in a choppy trading session. Buying interest waned shortly after the start of trading, with disappointing results from home improvement retailer Home Depot and department store chain Kohl's offsetting the positive sentiment. Traders seemed unfazed by President Donald Trump threatening higher tariffs on Chinese goods if an agreement is not reached.
While the Nasdaq rose 20.72 points or 0.2 percent to a new record closing high of 8,570.66, the Dow fell 102.20 points or 0.4 percent to 27,934.02 and the S&P 500 edged down 1.85 points or 0.1 percent to 3,120.18.
The major European markets ended mixed on Tuesday. While the French CAC 40 Index dipped by 0.4 percent, the German DAX Index crept up by 0.1 percent and the U.K.'s FTSE 100 Index inched up by 0.2 percent.
Crude oil prices plunged sharply on Tuesday amid rising concerns about excess supply in the market and on uncertainty about the U.S. and China signing a trade deal anytime soon. WTI crude for December delivery plunged $1.84 or 3.2 percent to $55.21 a barrel.
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