Asia report: Markers mixed after record-breaking session on Wall Street
Markets in Asia closed in a mixed state on Wednesday, as investors reacted to a record session on Wall Street overnight and reacted to the news late in the day that UK authorities had approved the Pfizer-BioNTech Covid-19 vaccine candidate.
In Japan, the Nikkei 225 was up 0.05% at 26,800.98, as the yen weakened 0.34% against the dollar to last trade at JPY 104.68.
Automation specialist Fanuc was up 0.01%, while among the benchmark’s other major components, fashion firm Fast Retailing was down 0.42% and technology conglomerate SoftBank Group lost 0.62%.
The broader Topix index was 0.32% firmer by the end of trading in Tokyo, closing at 1,773.97.
On the mainland, the Shanghai Composite was 0.07% weaker at 3,449.38, and the smaller, technology-heavy Shenzhen Composite added 0.16% to 2,290.21.
South Korea’s Kospi advanced 1.58% to 2,675.90, while the Hang Seng Index in Hong Kong was down 0.13% at 26,532.58.
Smartphone manufacturer Xiaomi saw its shares tumble 7.07% in the special administrative region, after it announced plans to sell new shares and bonds in a bid to raise almost $4bn.
The blue-chip technology stocks were well into the green in Seoul, with Samsung Electronics up 2.51% and SK Hynix rocketing 8.46%.
Sentiment was relatively rosy at the start of the Asian day, as equities rocketed on Wall Street overnight, leading to record closes for both the S&P 500 and the Nasdaq Composite.
“After US markets once again saw more record highs for the Nasdaq and the S&P 500, Asia markets have reacted slightly more cautiously, albeit the Nikkei still did manage to post a marginal new 29-year high,” said CMC Markets chief market analyst Michael Hewson.
“This caution may have something to do with the news that a new Biden administration would be unlikely to change anything with respect to the recent phase one trade deal agreed between the US and China almost a year ago - this isn’t altogether surprising.
“Whatever differences there are between Democrats and Republicans on domestic policy, when it comes to China there are many points of agreement, with the only clear water likely to be over approach, rather than substance.”
Late in the session, news flowed through from the UK that regulators there had become the first in the world to approve the Pfizer-BioNTech Covid-19 vaccine, which would now be rolled out in the country starting from next week.
Oil prices were higher at the end of the Asian day, with Brent crude last up 0.3% at $47.56 per barrel, and West Texas Intermediate ahead 0.29% at $44.68.
In Australia, the S&P/ASX 200 managed gains of 0.03% to 6,590.20, as fresh data showed the country’s economy as expanding beyond expectations in the September quarter.
The Australian Bureau of Statistics said the economy grew 3.3% quarter-on-quarter, well surpassing forecasts for a 2.6% improvement according to a Reuters poll.
It followed a 7% contraction in the quarter through June.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 slipped just 0.01% to settle at 12,728.69, as specialist dairy exporter A2 Milk slid 1.34% in Wellington.
The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.11% at AUD 1.3549, and the Kiwi advancing 0.02% to NZD 1.4149.