Asia markets mixed on fresh US sanctions on China’s biotech firms; eyes US inflation data

The Asia-Pacific equity markets were mixed on Tuesday, as sentiment hit after the U.S. government proposed new sanctions on Chinese biotech firms. Markets also tracked Wall Street’s rebound from last week’s selloff, traders shifted their focus to upcoming inflation data.
The Japan (NKY:IND) +0.23% rose on Tuesday, recouping losses from the previous session. The Japanese yen depreciated past 143 per dollar, paring gains from last week as the dollar rebounded.
China (SHCOMP) -0.53% fell on Tuesday, hitting fresh seven-month lows, as sentiment took a hit after the US government proposed new sanctions on Chinese biotech firms. The US House of Representatives passed a bill aimed at restricting business with WuXi Apptec (-4.4%), BGI Genomics (-3.6%), and several other biotech firms on national security concerns.
On the economic front, data showed that China reported a sharp increase in its trade surplus to USD 91.02 billion in August 2024 from USD 67.81 billion a year earlier. Export growth missed expectations in August, while imports increased more than anticipated.
Hong Kong (HSI) +0.12% in Tuesday morning trade, down for the sixth session amid caution ahead of Chinese merchandise data for August later in the day.
India (SENSEX) +0.05%.
Australia (AS51) +0.41% rose on Tuesday, reversing losses from the previous session and taking cues from a strong lead on Wall Street overnight, as weak domestic data weighed on sentiment. A private survey showed that consumer confidence in Australia declined in September amid concerns about the economy and jobs, while business sentiment hit a nine-month low in August.
In the U.S., on Monday, all three major indexes ended higher, recovering from last week’s steep losses as investors took advantage of lower prices and anticipated a potential interest rate cut from the Federal Reserve.
U.S. stock futures held steady on Tuesday after the major averages rebounded from last week’s selloff: Dow -0.09%; S&P 500 -0.14%; Nasdaq -0.25%.
Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).
More on Asia:
China’s trade surplus widens in August, exports grow fastest since March 2023 and imports missed forecasts
China CPI inflation picks up, but misses forecast, PPI continues to shrink
Japan Q2 GDP revised down to weaker gain
Japan set for political uncertainty as prime minister to step down amid scandals
Australia’s trade surplus rises to five-month high in July; investors digest Bullock remarks