Asia report: Markets higher as traders shrug off Pyongyang missile
Markets in Asia were mostly higher on Wednesday, as traders appeared to brush off the latest missile launch from a belligerent North Korea.
In Japan, the Nikkei 225 was ahead 0.29% at 22,597.20, as the yen weakened 0.31% against the dollar to last trade at JPY 111.84.
The major exporters were high on the agenda, with carmakers mixed but technology plays mostly higher in Tokyo.
Retail sales fell 0.2% year-on-year in Japan in October - the first fall in retail sales for a year, although it was in line with market expectations.
On the mainland, the Shanghai Composite added 0.13% to 3,338.00, and the smaller, technology-heavy Shenzhen Composite was ahead 0.04% at 1,919.06.
Property plays were on the up in Shanghai, with Poly Real Estate leading the pack at 10.02% above the waterline.
South Korea’s Kospi fell 0.05% to 2,512.90, while the Hang Seng Index in Hong Kong lost 0.19% to 29,623.83.
Blue chip technology stocks were under the cosh in Seoul, with Samsung Electronics off 1.28%, while cosmetics names were on top, as Amorepacific and Cosmax rose 1.45% and 4.88% respectively.
Pyongyang launched what appeared to be an intercontinental ballistic missile into the Sea of Japan during the day, according to reports from the Pentagon.
It was the first launch from the closed state since 15 September, and came just over a week after the US classification of the country as one that supports terrorism, on 20 November.
Reaction was quick from both the US and Japan, with Donald Trump promising that Washington would “take care of” the situation, before agreeing to increased cooperation with Japanese prime minister Shinzo Abe on the North Korea situation.
Hours after the launch, North Korea told its citizens that the new missile was capable of reaching the US through state media, although it added that it would not threaten nations that did not infringe on its sovereignty.
“The markets seem to be more immune than in the past to North Korea's missile testing,” noted ING Asia economist Prakash Sakpal on the region’s largely positive session.
Oil prices were under pressure during Asian trading, with Brent crude last off 0.22% at $63.47 per barrel and West Texas Intermediate down 0.24% at $57.85.
In Australia, the S&P/ASX 200 was 0.45% firmer at 6,011.12, led higher by the utilities and retail sectors, while the hefty financials subindex also climbed 0.62%.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 eked out gains of 0.01% to 8,141.96, with construction conglomerate Fletcher Building rising 1.8%, buoyed by investors wooed back after recent weakness in the firm’s share price.
It was a mixed day for the down under dollars, with the Aussie last 0.38% weaker against the greenback at AUD 1.3216, while the Kiwi was flat at NZD 1.4497.