Asia report: Markets higher on US-Mexico deal, NZX suffers massive glitch

Markets in Asia finished mostly higher on Tuesday, taking their cues from Wall Street overnight, which surged as the US and Mexico reached a deal on a new trade agreement.

In Japan, the Nikkei 225 was up 0.06% at 22,813.47, as the yen remained stable against the dollar, to last trade at JPY 111.08.

Shipping plays were among the leading gainers on the Tokyo benchmark, with that sector rising 2.3%.

On the mainland, the Shanghai Composite fell 0.1% to 2,777.98, and the smaller, technology-heavy Shenzhen Composite eked out gains of 0.07% to 1,497.70.

South Korea’s Kospi was 0.17% higher at 2,303.12, while the Hang Seng Index in Hong Kong rose 0.28% to 28,351.62.

The blue-chip technology stocks enjoyed a decent session in Seoul, with Samsung Electronics ending the day 0.54% firmer.

Developments stateside were at the top of traders’ agendas on Tuesday, after Mexico and the US announced they had reached a deal after several months of trade negotiations overnight.

The deal, understood to be titled the United States-Mexico Trade Agreement, would be in place for 16 years with a review every six, so long as it now gains the approval of Congress in Washington.

It’s understood the White House would now use the deal to strong-arm Ottawa into agreeing to broadly similar terms to replace the existing NAFTA agreement with Canada.

“Risk sentiment was given a further leg up overnight with the news that the US and Mexico had agreed on a trade deal to replace NAFTA,” noted National Australia Bank senior economist David de Garis.

Oil prices were higher, with Brent crude last up 0.63% at $76.69, and West Texas Intermediate adding 0.32% to $69.09.

In Australia, the S&P/ASX 200 was ahead 0.57% at 6,304.70, as investors helped breathe life back into the market after five days of political turmoil last week.

Supplements giant Blackmores rocketed ahead 11.53% in Sydney, after the company reported an 18.6% improvement in its profits for the year.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 managed gains of 0.08% before trading was suspended just 75 minutes into the session due to a series of technical glitches.

Self-listed exchange operator NZX said the first error was an internal, operational one, which was followed by another issue not long after it was resolved.

“The exchange has been in regular contact with market participants throughout the period,” said NZX chief financial officer Graham Law.

“NZX's current focus is on recommencing trading as soon as possible.”

The firm said normal trading would resume on Wednesday, with the problem now resolved, and a full investigation to take place in the coming days.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.09% at AUD 1.3599, and the Kiwi advancing 0.2% to NZD 1.49.