Shares in Asia were cautious on the first trading day of 2019, following a turbulent 2018 that saw most major global stock exchanges end the year with significant losses.
South Korea’s Kospi slipped almost 0.6 percent in morning trade, as shares of industry heavyweight Samsung Electronics shed 0.13 percent while chipmaker SK Hynix gained 0.66 percent.
The ASX 200 in Australia slipped back into negative territory, trading down by about 0.6 percent following an earlier recovery.
The heavily-weighted financial subindex fell more than 1.1 percent as shares of the so-called Big Four banks Down Under declined. Australia and New Zealand Banking Group traded down by 1.72 percent, Commonwealth Bank of Australia slipped around 1 percent, Westpac declined by 1.64 percent and National Australia Bank shed 1.54 percent.
The Japanese stock markets are closed for a public holiday on Wednesday.
Chinese shares slipped in morning trade. The Shanghai composite fell about 1 percent while the Shenzhen composite shed 0.426 percent and the Shenzhen component lost 0.552 percent.
The moves came after a private survey showed manufacturing activity in China for the month of December contracting for the first time in 19 months.
The Caixin/Markit Manufacturing Purchasing Managers’ index (PMI), fell to 49.7 from 50.2 in November — its first contraction since May 2017.
A reading above 50 indicates expansion, while a reading below that level signals contraction.
Economists polled by Reuters had expected only a marginal dip from November to 50.1.
Official manufacturing PMI released on Monday showed a slowdown in activity for the month of December as the sector contracted for the first time in more than two years, dropping below the critical 50 level.
The private survey focuses on small and medium-sized enterprises while the official PMI gauge focuses on large companies and state-owned enterprises.
Meanwhile, Hong Kong’s Hang Seng index fell more than 2.3 percent, with shares of Chinese tech heavyweight Tencent declining by almost 2.3 percent.
Chinese President Xi Jinping told U.S. President Donald Trump on Tuesday that history showed cooperation was the best way forward for both the United States and China.
In a congratulatory message to Trump, marking 40 years since the establishment of diplomatic relations between the two countries, Xi said China-U.S. relations have experienced ups and downs but have made historic progress over the past four decades, according to state news agency Xinhua.
Xi’s comments came on the back of Trump’s tweet that a “long and very good call ” had taken place between the two.
Both Trump and Xi agreed to a 90-day pause in tariff escalation in December 2018. The two countries have made plans for face-to-face consultations over trade in January, China’s Commerce Ministry said recently.
The ongoing Sino-U.S. trade war dominated headlines for much of 2018 as they rattled global stocks, with both Chinese and U.S. markets seeing their worst annual performances in a decade.
Xi is also set to deliver a major speech in Beijing on Wednesday about China’s relations with Taiwan, a highly sensitive issue dominating Chinese politics, according to local media.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 96.183 after seeing an earlier low of 96.127.
The Japanese yen was at 109.55 against the dollar after touching lows above 110.4 on Monday. The Australian dollar traded at $0.7018.
— Reuters and CNBC’S Huileng Tan contributed to this report.
