Asia report: Most markets higher as Beijing encourages markets

Most markets in Asia finished in the green on Tuesday, with stocks in China recovering from steep losses on Monday after Beijing issued some sentiment-boosting guidance, though there was also some concern about further deteriorations in the country’s already-faltering trade relationship with the US.

In Japan, the Nikkei 225 was up 1.45% at 21,457.29, as the yen weakened 0.41% against the dollar to last trade at JPY 112.83.

The broader Topix index advanced 1.38% to 1,611.46 in Tokyo.

Moves higher in the country came after fresh economic data showed Japan’s seasonally-adjusted unemployment rate fell to 2.3% for September, from 2.4% a month earlier.

On the mainland, the Shanghai Composite added 1.02% to close at 2,568.05, and the smaller, technology-heavy Shenzhen Composite improved 0.94% to 1,276.45.

Earlier in the session, the China Securities Regulatory Commission told traders that it was seeking to improve liquidity in the stock markets, as well as bring more capital onto the country’s bourses.

The country’s securities regulator said it was also looking to encourage firms to conduct mergers, acquisitions and share buybacks, but also lessen the amount of interference in the market which it deemed “unnecessary”.

South Korea’s Kospi was 0.93% firmer at 2,014.69, while the Hang Seng Index in Hong Kong slipped 0.91% to 24,585.53.

Traders in Seoul were given reason to cheer, after Korea’s financial authorities said they were seeking measures from the government to help stabilise the country’s stock markets.

The blue-chip technology stocks performed well, with Samsung Electronics adding 2.29% and SK Hynix rising 2.1%, after the US decided to place restrictions on exports to their Chinese chipmaking competitor Fujian Jinhua Integrated Circuit.

Sentiment was in a rut as markets in the region opened, after a poor performance on Wall Street overnight, which came on the back of reports that Washington was preparing yet another round of tariffs to implement on Chinese goods.

“The trade war between the US and China looks set to escalate over the next few months and its overall influence on global markets remains as one of the most important factors influencing investor sentiment,” noted analysts at Rakuten Securities Australia earlier.

They said investors would keep monitoring the situation closely in coming sessions, and in the run up to next year, with the world’s two largest economies continuing to “bash heads” and many global markets being left to deal with the aftermath.

It was understood the US would levy the charges on Beijing if talks between the two leaders - Donald Trump and Xi Jinping - failed to solve differences in the ongoing trade spat.

Oil prices were weaker, with Brent crude last down 0.81% at $76.72 per barrel, and West Texas Intermediate slipping 0.65% to $66.61.

In Australia, the S&P/ASX 200 was ahead 1.34% at 5,805.10, with most sectors making gains.

The hefty financials subindex was up 1.66%, while energy plays were up 0.83% and the materials sector was ahead 1.22%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.5% at 8,648.38, led higher by the self-listed market operator NZX, which was ahead 2.9%.

The company announced a new pricing structure and listing rules earlier in the session, having revealed slightly poorer third quarter revenue on Monday.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.54% at AUD 1.4095, and the Kiwi advancing 0.39% to NZD 1.5274.