Asia report: Chinese stocks fall on profit-taking, Japanese ruling coalition collapses

(Sharecast News) - Stocks across the region were mostly lower amid fresh antagonistic trade moves between China and the US, as well as news that Japan's ruling coalition had fallen apart.

The Shanghai Stock Exchange Composite Index declined by 0.94% to 3,897.03 and Hong Kong's Hang Seng by 1.73% to 26,290.97.

For some, the moves in Chinese stocks were a function of profit-taking following recent sharp gains in technology and gold mining names.

Shares of Cambricon shed 6.4% and those in Shandong Gold 4.65%.

Earlier on Friday, China's transport ministry announced that it would begin to charge fees on ships calling on its ports which were owned by US companies and persons, starting from 14 October.

The move was partly in response to a similar move by Washington that was due to kick into effect that same day and came amid reports that the Trump administration was planning other measures.

Some market commentary believed that each side was attempting to strengthen its negotiating position ahead of the APEC summit on 31 October-1 November where the Chinese and US leaders were scheduled to meet.

The Nikkei-225 fell 1.01% to reach 48,088.80, alongside a 1.85% drop for the broader Topix index 3,197.59.

Dollar/yen was little changed, dipping 0.10% to 152.91.

Overnight, talks between the newly chosen leader of Japan's LDP party, Sanae Takaichi, and the head of its coalition partner, Komeito's Tetsuo Saito, ended unsuccessfully.

Investors in South Korea on the other hand were still playing catch-up, pushing up the Kospi by 1.73% to 3,610.60 upon their return from an extended holiday.

According to analysts at Daiwa, Chinese consumption will likely stay soft through the end of the year, barring fresh government stimulus, Dow Jones Newswires reported.