Asia report: Markets higher as sentiment improves

Most markets in Asia finished Tuesday's session higher, as investor sentiment improved ahead of the G7 meeting later in the week.

In Japan, the Nikkei 225 was up 0.28% at 22,539.54, as the yen slipped 0.05% against the dollar to last trade at JPY 109.87.

Technology plays and retailers were among the winners of the day, though their gains were partially offset by financial stocks and oil firms.

On the mainland, the Shanghai Composite was 0.75% higher at 3,114.41, and the smaller, technology-heavy Shenzhen Composite surged 1.7% to 1,777.73.

South Korea’s Kospi rose 0.25% to 2,453.76, while the Hang Seng Index in Hong Kong finished the day 0.31% higher at 31,093.45.

Technology companies and manufacturers led the risers in Seoul, even as China launched an investigation into Samsung Electronics and SK Hynix.

The investigators in Beijing were reportedly looking into allegations of price-fixing, as prices for ‘DRAM’ data storage had risen sharply.

Sentiment improved in the region on Tuesday, following a decent session on Wall Street overnight.

But market watchers were still keeping one eye on trade tensions, after the recent imposition of steel and aluminium tariffs by the US on Canada, Mexico and the European Union.

Washington also made no progress in its most recent trade talks with Beijing, ahead of a meeting of world leaders at the G7 summit in Canada later in the week.

“Ahead of this, markets will be looking to see multilateral cooperation on economic issues in the light of recent anxieties about trade,” noted analysts at ANZ.

Oil prices were lower, with Brent crude last down 1.72% at $74.02 per barrel and West Texas Intermediate off 0.5% at $64.43.

In Australia, the S&P/ASX 200 slipped 0.51% to 5,994.90, with the hefty financials subindex being joined by miners and oil plays at the wrong end of the index.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 returned from a long weekend to rise 1.4% to 8,757.04, led higher by A2 Milk, which was ahead 5.3%.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.65% at AUD 1.3164 and the Kiwi retreating 0.39% to NZD 1.4281.