(Sharecast News) - Asia-Pacific equity markets delivered a mixed performance on Thursday, as South Korean stocks extended gains on post-election optimism.
Japanese and Australian shares slipped, however, amid signs of slowing US employment growth.
"Global markets are still cautious due to persistent trade tensions, with [US] president Trump casting doubt on progress with China," said Hargreaves Lansdown senior equity analyst Mat Britzman.
"US futures are trading broadly flat this morning, with sentiment dented after the latest bout of economic data showed slowing growth in private sector jobs.
"Strong earnings and a resurgence in the tech trade have been enough to push US markets higher over the past month or so, but there's still a sense of caution in the air."
Britzman noted that oil prices had dropped slightly, weighed down by growing concerns of a global oversupply.
"Saudi Arabia is pushing for a major increase in oil production and has slashed prices for Asian buyers, signalling weaker demand.
"At the same time, rising fuel stockpiles in the US and ongoing trade tensions are adding to market uncertainty."
Markets mixed on trade concerns, Korean election
South Korea's Kospi 100 climbed 1.91% to 2,813.69, reaching its highest level in 10 months.
Investor sentiment remained buoyant following the presidential election victory of Lee Jae-myung, with expectations of capital market reforms and a second supplementary budget in July.
Shares in Samsung Life soared 10.75%, while Samsung Electro-Mechanics and Doosan Heavy rose 8.46% and 7.62%, respectively.
In Japan, the Nikkei 225 dipped 0.15% to 37,554.49, while the broader Topix fell 1.03% to 2,756.47.
Losses were led by Sumitomo Dainippon Pharma, down 6.74%, and housing firm Sekisui House, which dropped 6.47%.
Chinese markets advanced, with the Shanghai Composite up 0.23% to 3,384.10 and the Shenzhen Component gaining 0.58% to 10,203.50.
Gains in Shanghai were led by smaller-cap stocks, including Time Publishing and Media and Suli, which both hit the 10% daily limit.
Hong Kong's Hang Seng Index rose 1.07% to 23,906.97, supported by a rally in tech and property shares.
Sunny Optical Technology gained 5.56%, Kuaishou Technology rose 5.01%, and Henderson Land added 4.52%.
Australia's S&P/ASX 200 edged down 0.03% to 8,538.90, weighed by a 6.35% drop in IDP Education and declines in Healius and Washington H. Soul Pattinson.
In contrast, New Zealand's S&P/NZX 50 rose 0.66% to 12,577.15, led by a 6.34% jump in Ryman Healthcare.
Currency markets saw the dollar strengthen 0.29% on the yen to trade at JPY 143.18, while it fell 0.3% against the Aussie to AUD 1.5357 and retreated 0.33% from the Kiwi, changing hands at NZD 1.6536.
Oil prices edged higher, with Brent crude futures last up 0.35% on ICE to $65.09 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.33% to $63.06.
Service activity picks up in China
In economic news, China's services activity picked up in May, supported by stronger domestic demand and a rebound in tourism, according to fresh private sector survey data.
Caixin's China services purchasing managers' index (PMI) rose to 51.1 from 50.7 in April, staying above the 50-point threshold that signals expansion.
The improvement in the headline figure reflected growing momentum in the domestic economy, particularly in travel and leisure services.
However, new export orders declined for a second consecutive month, as rising US-China trade tensions weighed on external demand.
The data came amid renewed friction between Washington and Beijing.
US president Donald Trump on Wednesday described the prospect of a trade agreement with China as "extremely hard", following mutual accusations of non-compliance with a deal reached in Switzerland last month.
Reporting by Josh White for Sharecast.com.
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