Asia-Pacific markets trade mixed as Trump comments hit defence stocks and oil prices fall

Singapore: Asia-Pacific equity markets were mixed in Thursday trading after U.S. stocks closed lower overnight, weighed down by geopolitical uncertainty and fresh comments from U.S. President Donald Trump that unsettled defence shares and pressured oil prices.

In the United States, major defence contractors slid after Trump said he would not allow companies in the sector to issue dividends or conduct share buybacks until concerns around executive pay and production performance were addressed. The remarks sparked a sell-off in defence stocks and contributed to a weaker close on Wall Street.

Oil prices also moved lower after Trump said Venezuela’s interim authorities would supply as much as 50 million barrels of crude to the United States, raising expectations of increased global supply.

Brent crude futures slipped 0.5% to $60.39 a barrel, while U.S. West Texas Intermediate traded at $56.33 a barrel during early Asian hours.

Japan and Hong Kong lead declines

Japan’s benchmark Nikkei 225 fell 0.7%, dragged down by losses in technology and basic materials stocks. Shares of SoftBank dropped 4%, while chip-equipment maker Tokyo Electron declined nearly 3%. The broader Topix eased 0.2%.

Hong Kong’s Hang Seng Index lost close to 1%, with technology and materials stocks leading the decline. Lenovo Group, Kuaishou Technology and Baidu all traded lower. Mainland China’s CSI 300 was largely unchanged.

Korea gains, Australia steady

South Korea’s Kospi rose 1.3%, while the smaller-cap Kosdaq added marginally, supported by selective buying in industrial and technology shares.

Australia’s S&P/ASX 200 was little changed in volatile trading. Shares of BlueScope Steel fell nearly 2% after the company rejected a $9 billion takeover proposal from Australia’s SGH and U.S.-based Steel Dynamics.

India edges lower

Indian markets opened weaker, with the Nifty 50 down 0.2% and the BSE Sensex slipping a similar amount, tracking global risk sentiment.

Wall Street cues

Overnight in the U.S., the S&P 500 and the Dow Jones Industrial Average ended lower, snapping a three-day winning streak. The tech-heavy Nasdaq Composite rose modestly, supported by gains in large-cap technology stocks.

U.S. equity futures were little changed in early Asian trading, suggesting a cautious tone as investors assess geopolitical risks, commodity movements and policy signals from Washington.