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Asian Markets Mixed On Trade Worries


Asian stock markets are mixed on Monday following the weak cues from Wall Street Friday amid growing worries about rising U.S.-China trade tensions and its impact on global economic growth after U.S. President Donald Trump warned that planned trade talks with China in September could be called off. Trump also said the U.S. is "not going to do business" with Chinese tech giant Huawei. Some of the markets in the region, including Japan, are closed for holidays.

The Australian market is flat after opening lower following the weak cues from Wall Street. Investors also digested mixed local corporate earnings results.

The benchmark S&P/ASX 200 Index is adding 0.90 points or 0.01 percent to 6,585.30, after touching a low of 6,555.10 earlier. The broader All Ordinaries Index is up 2.10 points or 0.03 percent to 6,665.50. Australian stocks eked out modest gains on Friday.

In the mining space, Rio Tinto and Fortescue Metals are losing more than 2 percent each and BHP Group is declining almost 1 percent.

Gold miners are also weak after gold prices ended flat on Friday. Newcrest Mining and Evolution Mining are declining almost 2 percent each.

Oil stocks are mostly flat despite a sharp increase in crude oil prices on Friday. Oil Search and Woodside Petroleum are edging up 0.1 percent each, while Santos is lower by 0.5 percent.

The big four banks are mostly edging higher. ANZ Banking and Westpac are edging up 0.1 percent each and Commonwealth Bank is adding 0.2 percent, while National Australia Bank is lower by 0.3 percent.

Bendigo and Adelaide Bank reported a more than 13 percent decrease in net profit for the full year, while cash earnings were down more than 6 percent on increased redundancy and remediation costs. However, the regional-focused lender's shares are advancing more than 1 percent.

JB Hi-Fi reported a 7 percent increase in its full-year profit on higher revenues and increased its final dividend. Shares of the electronic and whitegoods retailer are gaining more than 5 percent.

Fonterra has projected a full-year loss on impairments and said it will withhold a final payout to shareholders for a second year. The dairy co-operative's shares are losing almost 4 percent.

In the currency market, the Australian dollar is lower against the U.S. dollar on Monday. The local currency was quoted at $0.6778, compared to $0.6816 on Friday.

Elsewhere in Asia, Shanghai, South Korea and Hong Kong are modestly higher, while New Zealand, Indonesia and Taiwan are edging lower. The markets in Japan, Malaysia, Singapore and Thailand are closed for public holidays.

On Wall Street, stocks closed lower on Friday after President Donald Trump told reporters the U.S. is "not going to do business" with Chinese tech giant Huawei. Trump also indicated he is "not ready" to make a trade deal with China, suggesting the U.S. could skip the next round of trade talks in September.

The Dow ended the day down 90.75 points or 0.3 percent to 26,287.44, the Nasdaq slumped 80.02 points or 1 percent to 7,959.14 and the S&P 500 slid 19.44 points or 0.7 percent to 2,918.65.

The major European markets also moved to the downside on Friday. While the U.K.'s FTSE 100 Index fell by 0.4 percent, the French CAC 40 Index tumbled by 1.1 percent and the German DAX Index slumped by 1.3 percent.

Crude oil prices rose sharply on Friday, extending strong gains recorded in the previous session, on reports Saudi Arabia is set to cut crude exports next month, and on hopes OPEC will increase output cuts. WTI crude for September delivery rose $1.96 or about 3.7 percent to $54.50 a barrel on the New York Mercantile Exchange.

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