Asia report: Banks in Hong Kong lead most bourses higher

Equities were mostly higher in Asia on Friday, with shares in Hong Kong jumping higher on their return from several days off for the Lunar New Year holiday.

In Japan, the Nikkei 225 was up 0.73% at 27,439.99, as the yen strengthened 0.09% on the dollar to last trade at JPY 114.87.

Automation specialist Fanuc was down 0.24%, while among the benchmark’s other major components, fashion firm Fast Retailing jumped 3.56% and technology conglomerate SoftBank Group gained 0.37%.

The broader Topix index was 0.55% firmer by the end of trading in Tokyo, closing at 1,930.56.

Markets in mainland China remained closed for the week-long Lunar New Year holiday, which sees massive movements of people as millions travel to their family hometowns for the celebration.

South Korea’s Kospi was ahead 1.57% at 2,750.26, while the Hang Seng Index in Hong Kong jumped 3.24% to 24,573.29, having been closed since Monday for the Lunar New Year.

Anglo-Asian banks led the gains in the special administrative region after the Bank of England raised interest rates by 25 basis points on Thursday, for its second hike in a row.

HSBC leapt 4.99% in Hong Kong trading, and Standard Chartered was ahead 4.83%.

The blue-chip technology stocks were on the front foot in Seoul, with Samsung Electronics up 0.95% and SK Hynix rising 0.4%.

Oil prices were higher as the region entered the weekend, with Brent crude last up 1.46% at $92.44 per barrel, and West Texas Intermediate advancing 1.58% to $91.70.

Richard Hunter, head of markets at Interactive Investor, said prices for the thick black stuff were being lifted by supply concerns and increasing geopolitical tensions.

“An emerging winter storm across the US has added to the further threat of supply disruption, pushing the price to stand ahead by almost 18% in the year to date, and adding further grist to the inflationary mill,” he noted.

In Australia, the S&P/ASX 200 eked out gains of 0.6% to 7,120.20, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was the region’s odd one out, slipping 0.45% to 12,279.56.

Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.7% at AUD 1.4104, and the Kiwi retreating 0.58% to NZD 1.5097.