Asian markets were mixed in early trading Friday, after China threatened to retaliate if the Trump administration goes ahead with its latest tariff threats, yet still held out hopes for a trade deal.

Beijing will take unspecified “necessary countermeasures,” China’s Cabinet said in a one-sentence statement. It gave no details or any indication plans for trade talks in Washington in September might be affected.

President Donald Trump has said he plans to impose 10% tariffs on an additional $300 billion of Chinese imports starting Sept. 1, extending penalties to almost everything the United States buys from China. The Chinese announcement made no mention of Trump’s decision Wednesday to postpone penalties on about 60% of those goods until Dec. 15.

Still, officials from China’s foreign ministry later said they hope a trade deal will still be worked out, and said Trump and President Xi Jinping have remained in contact.

Meanwhile, investors were keeping an eye on U.S. bonds. The the 30-year Treasury yield

TMUBMUSD30Y, +1.05%

  fell to an all-time low Thursday, while the yield on the benchmark 10-year note

TMUBMUSD10Y, +0.82%

  hit a three-year low.

Japan’s Nikkei

NIK, +0.15%

  recovered from an early dip and was last about flat, while Hong Kong’s Hang Seng Index

HSI, +0.80%

  advanced 0.5%. The Shanghai Composite

SHCOMP, +0.68%

  gained 0.5% while the Shenzhen Composite

399106, +1.03%

  rose 0.6%. South Korea’s Kospi

180721, -0.76%

  fell 0.9%, while benchmark indexes in Taiwan

Y9999, +1.12%

 , Singapore

STI, -0.74%

  and Indonesia

JAKIDX, +0.42%

  were mixed. Australia’s S&P/ASX 200

XJO, -0.09%

  slipped 0.1%.

Among individual stocks, Screen Holdings

7735, +4.90%

  and Inpex

1605, +1.01%

  rose in Tokyo trading, while robotics maker Fanuc

6954, -0.83%

  fell. In Hong Kong, Ping An Insurance

2318, +2.98%

  and New World Development

17, +3.67%

  gained, while Tencent

700, -0.91%

  slipped. SK Hynix

000660, -1.17%

  and LG Electronics

066570, -0.83%

  declined in South Korea, and Foxconn

2354, +1.63%

  advanced in Taiwan. In Australia, Oil Search

BPT, +0.97%

  sank while Fortescue Metals

FMG, +1.80%


China’s central bank set the daily midpoint for the yuan at 7.0312 per U.S. dollar, the seventh consecutive session it’s been set weaker than the 7 level.

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