Asia report: China closes down while others advance

Most markets in Asia advanced on Thursday, shaking off the effect of a negative finish in the US overnight.

In Japan, the Nikkei 225 closed up 1.13% at 15,928.79. It was pushed along by the yen’s retreat back to the JPY 108 level against the dollar. The yen was last 0.22% weaker against the greenback at JPY 108.18.

That buoyed the major exporters, with Honda up 3.79%, Nissan adding 3.28% and Toyota gaining 3.92%.

BK Asset Management managing director of foreign exchange strategy, Kathy Lien, noted the reluctance of investors to own dollars.

"They are still skeptical about a 2016 rate hike even though each and every Federal Reserve official who has spoken, dove and hawks included, see tightening in 2016," she said.

Markets on the mainland decline, with the Shanghai Composite Index down 0.31% to 3,024.52 and the Shenzhen Composite losing 0.86$ to 1,935.60.

Before markets opened, the People’s Bank set renminbi stronger, at CNY 6.4616 to the dollar, against Monday’s loose peg of 6.4649. The onshore yuan can trade 2% either side of the fix.

Oil plays in China were mixed, with PetroChina closing largely flat while Sinopec lost 0.52%.

Metal stocks were also mixed, with BaoShan Steel adding 0.85% while Aluminium Corporation lost 0.87%.

In Korea, the Kospi pushed ahead by 0.56% to 1,981.32, while the Hang Seng Index in Hong Kong was up 0.31%.

Oil prices were choppy during Asian trading hours, but were ahead as the region went to bed. Brent crude was last up 1.34% at $43.40, while West Texas Intermediate was ahead 1.03% at $40.78.

In Australia, the S&P/ASX 200 added 0.89% to 4,975.60. It was boosted by the financials subindex, which advanced 1.73%.

Australasia’s big four banks - Australia and New Zealand Banking Group, Commonwealth Bank of Australia, National Australia Bank and Westpac - were all up between 1.3% and 2.49% in Sydney. They had been under pressure in the last month over concerns around bad debts, with all four being heavily exposed to the flagging energy and resources sectors.

Energy equities in the country were muted, with Santos down 0.51% and Woodside Petroleum remaining largely flat.

Metal was mostly up, with major miners BHP Billiton, Fortescue and Rio Tinto up between 2.11% and 3.86%.

New Zealand shares rose, with the S&P/NZX 50 adding 0.01% to 6,726.02. Health software firm Orion once again led the index, advancing 4.5% to a nine-month high.

The firm had announced three significant deals in the last fortnight, the latest being a new pair of UK clients.

Both of the down under dollars crept ahead against their American cousin, with the Aussie last 0.83% stronger at AUD 1.3055, and the Kiwi ahead by 0.52% at NZD 1.4505.