Asia report: Markets finish week mixed and oil prices rise further

Markets in Asia finished mixed on Friday, after a rallying session in the US overnight and a further uptick in oil prices, following an agreement between Russia and OPEC to extend their production limit to the end of 2018.

In Japan, the Nikkei 225 was up 0.41% at 22,819.03, as the yen gained 0.13% on the dollar to last trade at JPY 112.39.

Major exporters were slightly stronger on a weaker yen during the trading session, with Mitsubishi Electric ahead 0.27% and Toyota rising 1%.

Electronics firm Sharp surged 7.92%, after it reported that it had received permission from the Tokyo Stock Exchange to return to the bourse’s first section on 7 December.

Sharp had been relegated to the second section in 2016.

Energy plays were also higher as oil prices continued on the front foot, with Inpex up 2.77% and Japan Petroleum rising 2.84%.

On the mainland, the Shanghai Composite eked out gains of 0.02% to 3,317.81, and the smaller, technology-heavy Shenzhen Composite managed to rise 0.78% to 1,916.80.

Investors in China were digesting the unofficial Caixin purchasing managers’ index for the month, which was weaker than expected, after middling results from the official PMI on Thursday.

South Korea’s Kospi was down 0.04% at 2,475.41, while the Hang Seng Index in Hong Kong slid 0.35% to 29,074.24.

Oil prices were higher, after OPEC and Russia mutually agreed to extend their ceiling on production until the end of 2018 - a move widely expected by the markets.

“The world's biggest oil-producing countries believe that a global oversupply of oil is still weighing down oil prices noting that oil in storage - a proxy for the global glut - remains well above historical averages,” noted National Australia Bank currency strategist Rodrigo Catril.

Brent crude was last up 0.87% at $63.18 per barrel, and West Texas Intermediate was 0.73% firmer at $57.82.

In Australia, the S&P/ASX 200 was ahead 0.33% at 5,989.76, having topped 6,000 earlier in the session, with the big banks finishing mixed.

Australia and New Zealand Banking Group finished up 0.56%, Commonwealth Bank of Australia added 0.33% and Westpac was 0.29% firmer.

Energy stocks were higher on the rising oil prices, with Oil Search adding 1.99%, Santos up 1.18% and Woodside Petroleum 1.23% above the waterline.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up just 0.03% at 8,188.83, led higher by Tourism Holdings, which was ahead 3.8%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.02% at AUD 1.3215 and the Kiwi strengthening 0.25% to NZD 1.4602.