Asia report: Markets mixed after Tuesday boom on Wall Street

Markets in Asia were mixed as they closed on Wednesday, with Australia’s benchmark reaching its highest level in more than a decade after a record-breaking close on Wall Street overnight.

In Japan, the Nikkei 225 was down 0.27% at 22,200.00, as the yen strengthened 0.02% against the dollar to last trade at JPY 111.84.

Looking at the major components of the benchmark, automation specialist Fanuc was down 0.65%, fashion group Fast Retailing rose 1.71%, and technology conglomerate SoftBank Group was ahead 0.39%.

The broader Topix index was 0.67% lower in Tokyo, finishing the day at 1,612.05.

On the mainland, the Shanghai Composite managed gains of 0.09% to close at 3,201.61, and the smaller, technology-heavy Shenzhen Composite rose 1.1% to 1,747.88.

South Korea’s Kospi was 0.88% lower at 2,201.03, while the Hang Seng Index in Hong Kong lost 0.53% to settle at 29,805.83.

The blue-chip technology stocks were in the red in Seoul, with Samsung Electronics down 1% and SK Hynix off 3.09%.

Sentiment was buoyant early in the Asian day, after the S&P 500 rose 0.9% overnight to beat its previous record close, while the Dow Jones Industrial Average came within 1.1% of its all-time high.

It was the middle of a busy week for corporate earnings in the US, with most releases so far beating expectations, with FactSet showing that more than three-quarters of firms that have reported surpassing what analysts were anticipating.

“Asian markets failed to continue the positive run from the US,” said London Capital Group head of research Jasper Lawler.

“Markets across Asia lacked the corporate catalyst to charge higher.”

Progress was also being made on trade, however, with Washington preparing to send a trade delegation to Beijing next week to continue negotiations between the US and China.

Oil prices were lower as the region went to bed, with Brent crude last down 0.19% to $74.37 per barrel, and West Texas Intermediate off 0.52% to $65.96.

Prices for the thick black stuff had boomed in previous sessions, after the Trump administration confirmed the end of sanction waivers for eight countries on oil from Iran.

In Australia, the S&P/ASX 200 was 0.99% higher at 6,382.10, reaching its highest level in more than 10 years at the close in Sydney.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 added 0.7% to reach another record high, closing at 10,071.74.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.97% at AUD 1.4216, and the Kiwi retreating 0.55% to NZD 1.5103.