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Asia report: Markets fall on renewed fears of Trump-incited trade war
Markets in Asia were largely below the waterline by the end of Wednesday after turbulent trade, following reports that one of US president Donald Trump's top economic advisors has resigned in the wake of the White House imposing punitive tariffs on steel and aluminium.
In Japan, the Nikkei 225 was down 0.77% at 21,252.72, as the yen strengthened 0.18% against the dollar to last trade at JPY 105.94.
The iron and steel sector in Tokyo was down 2.12% - many of the industry's exported would be significantly affected if Trump's planned tariffs of up to 25% go ahead.
On the mainland, the Shanghai Composite was off 0.55% at 3,271.46, and the smaller, technology-heavy Shenzhen Composite lost 0.78%.
South Korea's Kospi slipped 0.4% to 2,401.82, while the Hang Seng Index in Hong Kong slid 1.03% to 30,196.92.
Going against general sentiment in Seoul was the technology sector, with Samsung Electronics rising 3.4% ahead of the hyped-up release of its Galaxy S9 smartphone to the market, while rival chipmaker SK Hynix was up 0.36%.
Early focus was on reports that Pyongyang was open to talks with Washington DC over the subject of denuclearisation, which led to shares in Shinwon surging 21.81%.
The company had managed factories in the now-shuttered Kaesong Industrial Region, which involved South Korean companies doing business in North Korean territory in a symbol of economic partnership.
Kaesong was closed as a result of the increasingly alarming nuclear policy of Pyongyang in 2016, having earlier suffered a shorter closure in similar circumstances in 2013.
Later in the session, the focus turned back to fears of a trade war, amid news that White House chief economic advisor Gary Cohn resigned overnight.
Details around Cohn's departure were not made immediately clear, but traders did note the timing came as global concerns around Trump's punitive steel and aluminium tariffs heighten.
Trump's typical war of words continued as well, after he suggested that car imports from the European Union could be taxed if Brussels retaliates to the initial metals tariffs.
"It won't end there," noted ING chief economist Robert Carnell.
"It is not hard to characterise current market behavior as complacent."
In Australia, the S&P/ASX 200 fell 1.01% to 5,902.00, with the big four banks all dragging the hefty financials subindex down.
Gold was the only sector in the green in Sydney, as that subindex rose 1.49%.
Across the Tasman Sea, New Zealand's S&P/NZX 50 fell 0.5% to settle at 8,284.34, with Metro Performance Glass losing 2.5% to reach a record low.
The company - which was seeing its margins squeezed as it suffered from capacity constraints amid a construction boom - was a contender for being dropped out of the NZX 50 index in this month's reweightings.
Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.2% at AUD 1.2799 and the Kiwi retreating 0.15% to NZD 1.3729.