Asian Markets Lower as Hong Sinks 2%

Asian and Pacific Rim markets were on the defensive despite positive trade news from China and the United States.

The regional traders, in the Asian and Pacific region were monitoring increased tensions in Hong Kong closely as several were hurt over the weekend.

In Japan, the benchmark Nikkei 225 was down 0.2 percent by late morning as shares reversed opening gains. The Topix index, in Tokyo, was trading around the flat lines.

In South Korea, the Kospi composite index was down 0.77 percent. Shares of Samsung lost 1.15 percent and shares of rival chip maker SK Hynix lost 1.9 percent.

Elsewhere in the Asian region, the Australian S&P ASX 200 was up over half a percent.

In China, on the mainland, the Shanghai composite was down over one percent and the Shenzhen composite fell 1.3 percent. The Shenzhen component surrendered 1.27 percent.

In Hong Kong, as the political turmoil worsens, the Hang Seng index was down better than two percent by the late morning.

Asian Traders Monitor Trade Comments through and Tensions in Hong Kong

At least two protestors, in Hong Kong, are dead in clashes with police. The police opened fire on protestors and arrested at least three pro-democracy lawmakers.

Looking at trade headlines, the United States and China have agreed, if a Phase One trade deal is signed, to roll back some tariffs.

This should have improved sentiment and equities as traders see the trade war easing. That would improve the global economic outlook. However regional traders in Asia were more concerned with Hong Kong.

Also, there is some conflicting commentary out of the U.S. There are advisors in the White House who have said they are not very happy to give up punitive tariffs so fast. Even President Donald Trump expressed he was not fully on board yet.

On Thursday, White House spokeswoman Stephanie Grisham, in a television interview, said that the United States is “very, very optimistic” about signing a trade deal with China very soon.