Asian shares were mixed on Monday, the first trading day of the new quarter, taking a cue from a weaker U.S. equities close last week and on heightened tension on the Korean Peninsula.
U.S. President Donald Trump told the Financial Times, that the U.S. will take unilateral action to eliminate nuclear threats from North Korea, unless China, one of the hermit state’s closest ally, intensifies pressure on Pyongyang. These comments come ahead of a two-day meeting this week in Florida with Chinese President Xi Jinping.
In Australia, the benchmark ASX 200 was down 0.29 percent, as its materials sub-index dragged.
Japan’s Nikkei 225 was up 0.13 percent in early trade. The Bank of Japan’s Tankan quarterly survey showed that large Japanese manufacturers’ sentiment was up +12, lower compared to a Reuters poll forecast for +14. Japan’s service sector saw sentiment improve, up +20.
“For the manufacturing sector, exports are growing especially to the U.S., China and Asia, but I guess people are a bit concerned about what’s happening in the U.S.,” said Sayuri Shirai, professor at Keio University.
Across the Korean strait, the Kospi added 0.17 percent.
South Korea’s first digital bank, K Bank, launched on Monday and will allow customers to open a bank account or apply for a loan on customer’s smartphones.
Over in stateside markets, the Dow Jones industrial average fell 0.31 percent to close at 20,663.22, the S&P 500 finished down 0.23 percent to 2,362.72 and the Nasdaq composite was down 0.04 percent to finish at 5,911.74.
The dollar index was trading steady at 100.43 against a basket of currencies. Against the greenback, the yen was at 111.18, down from levels as high as 112.19 seen last Friday, and the Australian dollar fetched $0.7629.
In energy news, Iraq assured the Organization of Petroleum Exporting Countries (OPEC) that it will fully comply with an agreement to cut supply, OPEC Secretary General Mohammed Barkindo said on Sunday in Baghdad.
Global benchmark Brent crude was down 0.17 percent at $53.44 a barrel during early Asian trade, and U.S. crude slipped 0.04 percent to $50.58.