Asia report: Dovish Fed and Brexit jitters see markets end mixed

Markets in Asia finished mixed on Thursday, after a strong Wednesday in the US, a rise in oil prices and the release of dovish minutes from the Federal Reserve.

Japan’s Nikkei 225 lost 0.67% to finish at 15,276.24, as the yen strengthened towards the end of the session and was last ahead 0.37% on the greenback at JPY 100.94 per $1.

Markets on the mainland were relatively flat, with the Shanghai Composite Index losing 0.1% to 3,016.93 and the Shenzhen Composite finishing at 2,015.15.

In Korea, the Kospi added 1.07% to 1,974.08, while Hong Kong’s Hang Seng Index closed up 1.03% to 20,706.92.

Shares in Korean technology giant Samsung Electronics were 2.04% higher after the smartphone producer said it expected second quarter operating profit to rise 17.4% year-on-year, beating analyst forecasts.

It would be the highest quarterly profit for Samsung in two years, with the flagship Galaxy S7 smartphone lighting the rocket boosters under the company’s books.

The region had sold off on Wednesday, as Brexit-fuelled growth concerns fanned the flames of global anxiety.

On Wednesday, the rate-setting Federal Open Market Committee was divided in its opinion but was shown to have played it safe in its 14-15 June meeting, 10 days before the result of the crucial European Union referendum across the Atlantic that has since proved a catalyst for considerable market turmoil.

"Members generally agreed that, before assessing whether another step in removing monetary accommodation was warranted, it was prudent to wait for additional data on the consequences of the UK vote," the minutes read, while views were split on the interpretation of payroll data from April and May, and on the likelihood of inflation rising.

“Calmer heads seem to have prevailed in the US and we are once again seeing a situation where the US economy is seemingly looking OK, while the UK and Europe are showing increasing signs of fragility,” noted IG chief market strategist Chris Weston.

Oil prices were ahead in Asian trading, with Brent crude last up 1.16% at $49.37 per barrel and West Texas Intermediate up 1.15% to $47.98.

In Australia, the S&P/ASX 200 closed up 0.58% to 5,227.92, with the weighty financials subindex as well as the energy and materials sectors underpinning the gains.

New Zealand shares were also ahead, with the S&P/NZX 50 rising 0.4% to break through the 7,000 mark, finishing at 7,007.51.

The country’s booming aged care industry were among the leading risers, with Summerset Group adding 3.3% and Ryman Healthcare up 1.1%.

Both of the down under dollars gained on the greenback, with the Aussie ahead 0.08% at AUD 1.3286 per $1 and the Kiwi surging 1.17% to NZD 1.3856.