Asia report: Markets mostly higher as China data beats forecasts

Markets in Asia finished mainly higher after their first session for November, with China stocks seeing a boost after better-than-expected economic data.

In Japan, the Nikkei 225 was down 1.06% at 21,687.65, as the yen strengthened 0.12% against the dollar to last trade at JPY 112.81.

The broader Topix index was 0.85% lower at 1,632.05 in Tokyo.

Technology plays were the losers of the day in the country, with Panasonic falling 5.64%, and tech investment giant SoftBank plummeting 8.16%.

Analysts said the decline could be put down to recent news that one of its domestic telecoms competitors in Japan was set to lower its charges.

Still, Morningstar analyst Dan Baker said it seemed like an oddly large movement given the “smaller contribution” of domestic Japan telecoms operations to SoftBank’s value.

On the mainland, the Shanghai Composite rose 0.13% to 2,606.24, and the smaller, technology-heavy Shenzhen Composite was ahead 0.93% at 1,306.31.

The gains in China came after the release of the unofficial Caixin-IHS Markit purchasing managers’ index for October, which came in at 50.1.

Analysts had picked a reading of 49.9 in a Reuters-polled forecast, compared to a flat 50 figure in September.

South Korea’s Kospi was 0.26% weaker at 2,024.46, while the Hang Seng Index in Hong Kong surged 1.75% to 25,416.00.

Oil prices were lower, with Brent crude last down 0.5% at $74.67 per barrel, and West Texas Intermediate off 0.32% at $65.10.

In Australia, the S&P/ASX 200 managed gains of 0.18% to 5,840.80, with the materials subindex advancing 1.28%.

Of the major miners, BHP added 2.79%, Fortescue Metals was up 2.75%, and Rio Tinto was 2.09% higher.

BHP was in the green after it confirmed plans to return $10.4bn to shareholders through both a special dividend and an off-market buyback.

The mining giant said it was looking to complete a $5.2bn off-market buyback immediately, with the special dividend to be paid from the proceeds of the recent sale of its onshore US holdings.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was ahead 1.1% at 8,843.83, though the country’s largest fuel company Z Energy plunged 9.3%.

Its shares hit a five-year low after it reported a 21% drop in earnings for the first half, and confirmed a disappointing dividend.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 1.39% at AUD 1.3941 and the Kiwi advancing 1.59% to NZD 1.51.