HSI, Nikkei Slip On Trump's Mexico Threat

The local bourse edged down in early trade, after US President Donald Trump announced tariffs on all Mexican imports.

The Hang Seng Index lost 0.14 percent, or 37 points, to 27,077.

On the mainland, the Shanghai and Shenzhen Composite indices were flat at 2,904 and 1,532.

Tokyo also opened lower, with shares in carmakers that have Mexico plants dropping sharply.

The Nikkei 225 fell 0.79 percent, or 164 points, at 20,777 in early trade, while the Topix index was down 0.77 percent, or 11 points, at 1,520.

Trump abruptly announced the tariff plan on Twitter, saying Washington would impose it from June 10 until "illegal migrants" stop coming through Mexico into the United States.

The move sent shares in Japanese automakers down sharply, with Honda dropping 3.75 percent to 2,665 yen, Mazda plummeting 6.25 percent to 1,071.5 yen, Nissan down 3.66 percent to 747.4 yen, and Toyota slipping 2.54 percent to 6,404 yen.

Hiroaki Hiwata, strategist at Toyo Securities, said many Japanese carmakers would be hurt by the decision because they have plants in Mexico.

The dollar traded at 109.26 yen in early Asian trade, against 109.61 yen in New York late Thursday. (AFP)