Asia report: Most markets higher on near-full day of trading

Most markets in Asia were higher on Tuesday, in the first full day of trading for the major bourses after more than a week of various public holidays.

In Japan, the Nikkei 225 was up 0.64% at 20,823.51 after being closed for a long weekend on Monday, as the yen strengthened 0.28% against the dollar to last trade at JPY 112.36.

The major exporters were mixed, with Toyota adding 1.61%, while Mazda Motor lost 1.33% and Sony was off 0.65%.

On the economic front, Japan’s current account surplus for August was JPY 2.38trn - well above the JPY 2.26trn estimated in a Reuters poll.

In corporate news in Tokyo, Kobe Steel’s shares plunged 21.93% after the company admitted to faking data on its products in a bid to meet customer specifications.

On the mainland, the Shanghai Composite closed 0.27% higher at 3,383.54, and the smaller, technology-heavy Shenzhen Composite was 0.78% firmer at 2,030.18.

Renminbi was stronger against the dollar, after the People’s Bank of China raised the onshore yuan’s loose peg to CNY 6.6273 against the dollar - the first raise since 22 September.

The onshore yuan is permitted to trade at 2% above or below the loose peg, while the offshore yuan floats freely in currency markets.

China's foreign exchange reserves increased by $17bn in September, it was reported on Tuesday, to $3.11trn.

It was the eighth consecutive monthly increase in foreign exchange reserves, which has largely been put down to Beijing’s tightening of capital outflow restrictions.

On the corporate front in China, Great Wall Motor’s interest in a merger-by-acquisition with Fiat Chrysler was questioned by the latter’s chief, who questioned whether it was the correct solution for the US-Italian carmaker’s woes.

Great Wall had expressed an interest in purchasing Fiat Chrysler in August.

South Korea’s Kospi added 1.64% to 2,433.81, while the Hang Seng Index in Hong Kong was up 00.58% at 28,490.83 at the close.

Technology blue-chips were buoyed by profit expectations in Seoul, with Samsung Electronics ahead 2.96% and SK Hynix surging 7%.

Oil prices were higher during Asian trading, with Brent crude last up 0.99% at $56.35 per barrel and West Texas Intermediate ahead 1.14% at $50.15.

In Australia, the S&P/ASX 200 was 0.02% softer at 5,783.11, led lower by a drop of 0.8% in the energy subindex.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 added 0.3% to 8,037.81 - a fresh all-time record - led higher by dairy products and infant food exporter A2 Milk, which rose 3.3% to its own fresh record high.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.39% to AUD 1.2847 and the Kiwi advancing 0.1% to NZD 1.4141.