Asia shares mixed as yen hits Tokyo, China trade aids Shanghai

Investing.com - Asia shares were mixed on Thursday with Tokyo down on a strong yen and Shanghai gaining after solid trade figures.

The benchmark Nikkei 225 fell 1.12% with major exporters weaker as the dollar fetched about 108.85 yen, with the Japanese currency strengthening from levels over 111 reached earlier in the week.

The Shanghai composite rose 0.12%, while the Hang Seng index was fractionally lower by 0.09%.

In dollar terms, exports rose 16.4 % year-on-year in March with imports soaring 20.3%, both beating expectations, for a trade balance surplus of $23.9 billion, more than double the expected figure.

China's imports soared by 31.1% in yuan terms, customs data showed on Thursday, with exports up 14.8% for the first quarter from a year ago. China reported a trade surplus of CNY454.94 billion in the period.

In Australia, the ASX 200 traded down 0.85% with Rio Tinto (LON:RIO) down 4.73%, Fortescue down by 6.86% and BHP Billiton (LON:BLT) lower by 4.3%.

Australia's central bank will released its Financial Stability Review with comment that banks were in sounsd shape overall, but that high houing prices could prompt a look at tightening lending rules to avoid instability.

"The concern is that investors are likely to contribute to the amplification of the cycles in borrowing and housing prices, generating additional risks to the future health of the economy," the RBA said in a report where the word "vulnerable" cropped up repeatedly.

As well, jobs data showed a surge in the employment change figure for March to 60,900 workers compared to a gain of 20,000 seen, under a steady unemployment rate of 5.9%.

Overnight, U.S. stocks closed lower on Wednesday, as geopolitical concerns fuelled the risk-off sentiment for a second straight session while President Trump’s comments rattled the dollar.

The start of the earnings season failed to lift sentiment, as geopolitical jitters remained front and center, causing a ‘flight to safety’, as investors ditched equities in favour of safe-haven assets such as gold and U.S. treasuries.

U.S.-Russia relations remained in the political spotlight, as U.S. Secretary of State Rex Tillerson was expected in Moscow on Wednesday to meet with his Russian counterpart Sergey Lavrov and discuss a number of sensitive topics including the Korean peninsula, Syria and bilateral relations.

The meeting between Tillerson and Lavrov, came fresh off the heels of comments from Russia President Vladimir Putin on Wednesday, after he said trust had eroded between the United States and Russia.

President Trump confirmed that U.S.- Russia relation had strained, after he said the U.S. is “not getting along” with Russia and relations are at an “all-time low”

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Meanwhile, the dollar slumped to lows, after President Donald Trump told the Wall Street Journal that he thinks the currency (dollar) is getting “too strong” while he added "I do like a low-interest rate policy, I must be honest with you.”

The Dow Jones Industrial Average closed 0.29% lower at 20,591. The S&P 500 dipped 0.38% and the Nasdaq Composite fell by 0.52% to 5836.16.