Asia report: Markets make modest gains after last week's turbulence

Asia-Pacific markets mostly rose on Monday as investors cautiously looked to upcoming US inflation data, after a volatile week of trading last week.

The region's markets reflected a varied response ahead of the key US consumer price index data due on Wednesday, with retail sales set to follow on Thursday.

Japan’s markets were closed for the Mountain Day public holiday on Monday.

“Following Friday's mostly positive signs from US markets, Asian stock markets are relatively higher on Monday as they continue to rebound from a recent sell-off that was prompted by worries that the largest economy in the world will enter a recession,” said TickMill market analyst Patrick Munnelly.

“Additionally, before important US inflation data later this week, traders might be hesitant to make more large moves. Friday's Asian market close was largely positive.

“Markets will be driven this week by speeches by Fed officials, China's monthly activity data, monetary policy meetings of the Reserve Bank of New Zealand and Norges Bank, US inflation data that is crucial to Federal Reserve interest rate forecasts, and US earnings releases.”

Most markets rise on otherwise quiet Monday

In China, both the Shanghai Composite and the Shenzhen Component ended the day lower, down 0.14% and 0.24%, respectively.

Major decliners in Shanghai included Yonghui Superstores, which plummeted by 10%, Ningxia Building Materials, down 9.98%, and Guangzhou Tongda Auto Electric, which dropped by 9.92%.

Hong Kong's Hang Seng Index managed a modest gain of 0.13%, closing at 17,111.65.

Leading the market were WuXi Biologics, up 3.7%, Lenovo Group, which rose 2.59%, and Orient Overseas International with a 2.25% increase.

South Korea's Kospi saw a more robust increase of 1.15%, closing at 2,618.30.

The strongest performers included Kogas, which surged by 11.59%, SK Biopharmaceuticals, up 7.04%, and LG Innotek, which gained 6.37%.

In Australia, the S&P/ASX 200 climbed 0.46% to close at 7,813.70, with the top gainers including Westgold Resources with a 9.16% increase, JB Hi-Fi up 8.33%, and Bellevue Gold rising 5.43%.

JB Hi-Fi was in focus after the electronics retailer reported a fall in net profit after tax, but announced a special dividend of 80 Australian cents per share.

It decided to make the distribution on the back of an “elevated” net cash position and a big franking credit balance.

Franking credits in Australia refer to tax credits paid by companies to shareholders alongside dividends, as part of the country’s relatively generous dividend imputation regime.

New Zealand's S&P/NZX 50 edged up by 0.31% to 12,281.25, supported by gains in Vista Group International, up 5.23%, Skellerup Holdings, which increased by 3.21%, and Restaurant Brands New Zealand with a 2.74% rise.

In currency markets, the dollar was last up 0.46% on the yen to trade at JPY 147.29.

The greenback was meanwhile weaker against its down under counterparts, falling 0.29% on the Aussie to AUD 1.5159, and retreating 0.43% from the Kiwi to change hands at NZD 1.6592.

Oil prices also saw modest gains, with Brent crude futures last up 0.5% on ICE at $80.06 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.7% to $77.38.

Nvidia demand sees Korean chip exports to Taiwan surge

It was a relatively quiet day on the data front in Asia, but fresh data released over the weekend showed South Korea's memory chip exports to Taiwan dramatically rising in the first half of the year.

They reportedly surged by 225.7% compared to the same period last year, according to data released by the Ministry of Trade, Industry and Energy and the Korea International Trade Association on Sunday.

That growth was largely attributed to SK Hynix's supply of high bandwidth memory chips to American AI and graphics chip giant Nvidia.

Nvidia relies on Taiwan's TSMC for chip fabrication, driving a sharp rise in South Korea's exports to Taiwan.

Reporting by Josh White for Sharecast.com.