Asia report: Markets finish mixed amid fresh growth concerns

Markets in Asia finished in a mixed state on Tuesday, with investors reacting to weaker economic data from Europe released on Monday, stoking fears that global growth was slowing.

In Japan, the Nikkei 225 was up 0.09% at 22,098.84, as the yen weakened 0.12% against the dollar to last trade at JPY 107.68.

Of the major components on the benchmark index, automation specialist Fanuc was up 0.42%, while fashion firm Fast Retailing was down 1.16% and technology conglomerate SoftBank Group slid 1.82%.

The broader Topix index was up 0.42% by the end of trading in Tokyo, to finish the day at 1,622.94.

On the mainland, the Shanghai Composite added 0.28% to 2,985.34, and the smaller, technology-heavy Shenzhen Composite grew 0.33% to 1,665.56.

Trade was once again on the agenda in China, with importers in the country reportedly buying 10 boatloads of United States soybeans following trade negotiations between Beijing and Washington last week.

South Korea’s Kospi was ahead 0.45% at 2,101.04, while the Hang Seng Index in Hong Kong managed gains of 0.22% to close at 26,281.00.

Brewing giant Anheuser-Busch InBev priced shares in its Asian operation at HKD 27 each during the session, at the lower end of the range it had indicated for its second attempt to spin out the business on the Hong Kong exchange.

The shares were expected to begin trading on 30 September.

Both of the blue-chip technology stocks were higher in Seoul, with Samsung Electronics up 0.41% and chipmaker SK Hynix rising 0.72%.

Investor attention was set on Europe at the start of the Asian day, as data released on Monday increased concerns that the global growth outlook was worsening.

Manufacturing activity in Germany slid to its lowest level in a decade for September, with the services sector of the European powerhouse reported to be growing at its slowest rate in nine months.

In the wider eurozone, manufacturing activity fell to its lowest level in more than six years, and services grew at its slowest pace in eight months, according to data from IHS Markit.

“Christine Lagarde, who is preparing to take the rein of the ECB in November said that trade is the ‘biggest hurdle’ for the global economic growth, as relations between the US and China remain fragile and unpredictable,” said London Capital Group senior market analyst Ipek Ozkardeskaya.

“But investors put their trust in Christine Lagarde for a creative monetary policy.

“So far, the low-to-negative interest rates and tens of billions of euro worth of asset purchases failed to revive growth yet disturbed the balance of the financial markets significantly.”

Ozkardeskaya said that, although outgoing president Mario Draghi had highlighted the bank’s readiness to act further to sustain growth in the eurozone, the ECB was left with a limited margin to add more stimulus via the existing tools, as sovereign yields were already “distressingly” low, if not negative.

Oil prices were lower as the region went to bed, with Brent crude last down 1.31% at $63.93 per barrel, and West Texas Intermediate falling 1.09% to $58.01.

In Australia, the S&P/ASX 200 was near flat, slipping 0.01% to end its trading session at 6,748.90.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.1% lower at 10,858.71, led lower by specialist dairy exporter A2 Milk, which was 3.1% softer.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.3% at AUD 1.4722, and the Kiwi retreating 0.13% to NZD 1.5868.