Asia report: Markets higher as China, Korea remain shut

Markets in Asia were all higher on Friday, on the final day of a quiet week marked by a number of exchange closures due to public holidays.

In Japan, the Nikkei 225 was up 0.3% at 20,690.71, as the yen weakened 0.07% against the dollar, last trading at JPY 112.90.

Markets in mainland China were still closed for holidays, as were those in South Korea.

Hong Kong’s Hang Seng Index was ahead 0.28% at 28,458.04

Traders were seemingly looking beyond a number of global risk factors and uncertainties during the week, instead focussing on the bigger growth picture, according to some market watchers.

“The global economy is looking stronger and stronger and this is driving profits all at a time when inflation and central banks remain relatively benign,” noted AMP Capital chief economist and head of investment strategy Shane Oliver.

“US, eurozone and Japanese shares saw good gains over the last week but Australian shares remained relatively weak reflecting a relatively less positive growth and profit outlook.”

Oil prices were lower towards the end of the Asian trading day, with Brent crude last down 0.42% at $56.76 per barrel and West Texas Intermediate off 0.99% at $50.29.

In Australia, the S&P/ASX 200 added 1.04% to close at 5,710.67, with all sectors finishing in the green, apart from utilities.

The hefty financials subindex was ahead 1.14%, with the big four banks all higher - Australia and New Zealand Banking Group added 1.34%, Commonwealth Bank of Australia was up 1.3%, National Australia Bank added 1.13% and Westpac Banking Corporation was 1.32% firmer.

Concern around household spending was still a talking point in the sunburnt country, after Reserve Bank of Australia board member Ian Harper told the Wall Street Journal that, while recent poor performance in retail sales was not an immediate concern, the central bank was not ruling out further interest rate cuts.

Earlier in the week, the RBA stood pat on interest rates for the 14th month in a row, leaving the official cash rate at a record low 1.5%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 eked out gains of 0.03% to close at 7,977.34, led higher by energy generator and retailer Meridian Energy, which added 2.5%.

Dairy products and infant formula exporters Synlait and A2 Milk were both down, losing 2.6% and 1.4% respectively, after they both reached record highs on Thursday.

The two firms had been buoyed by the successful registration of their formulas and brands under China’s newly stringent food importation scheme, with the People’s Republic seen as a key market for premium food exports from New Zealand.

New Zealand and China have had a free trade agreement since 2008.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.23% at AUD 1.2858 and the Kiwi retreating 0.37% to NZD 1.4104.