Asia report: Markets finish higher, Tokyo exchange halted

Markets in Asia closed in positive territory on a quiet Thursday, with many bourses closed for holidays, as Tokyo’s exchange halted trading early due to a hardware fault.

In Japan, the Nikkei 225 was down 0.0008% at 23,184.93 in the little trading that it did manage, as the yen strengthened 0.13% to last trade at JPY 105.62.

The broader Topix index was flat by the time trading was halted, at 1,625.49.

During the afternoon, Japan Exchange Group said the Tokyo Stock Exchange had to halt trading for the day after a hardware error.

“TSE is currently planning to replace the hardware and taking steps, including other maintenance, to ensure normal trading from tomorrow onwards,” the exchange operator said in its statement.

According to Reuters, government officials ordered the exchange to identify and report the cause of the issue after trading was halted.

On the economic front, the large manufacturers index in the quarterly Tankan survey from the Bank of Japan came in lower than expectations at -27.

Economists polled by Reuters had been anticipating a reading of -23, but it was still better than the -34 reported in June’s Tankan survey.

“A slower-than-expected recovery in the Tankan - or the Business Short-Term Economic Sentiment Survey to give the Bank of Japan’s study its full name - highlights one of the initial challenges that faces Tokyo’s new Prime Minister, Yoshihide Suga,” said AJ Bell investment director Russ Mould.

“The quarterly Tankan survey came in at -28 for all companies, only marginally higher than July’s reading of -31 and was therefore the second-lowest score since the fourth quarter of 2009, just as the global financial crisis was drawing to a close.

“Mr Suga already has a lot to live up to, and not just because he is replacing Japan’s longest-serving modern-day Prime Minister, Shinzo Abe.”

Markets in China, Hong Kong and South Korea were all closed for public holidays on Thursday.

Oil prices were weaker at the end of the Asian day, with Brent crude last down 0.54% at $42.07 per barrel, and West Texas Intermediate off 0.62% at $39.97.

In Australia, the S&P/ASX 200 was ahead 0.98% at 5,872.90, with the country’s major banks making modest gains.

Australia and New Zealand Banking Group was up 0.99%, Commonwealth Bank of Australia added 0.68%, National Australia Bank advanced 0.45%, and Westpac Banking Corporation was 0.48% firmer.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 added 0.56% to 11,812.73, with much of the gains coming from medical equipment manufacturer Fisher & Paykel Healthcare, which closed ahead 2.31%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.24% at AUD 1.3928, and the Kiwi advancing 0.23% to NZD 1.5077.