Asia report: Markets mixed ahead of risky Thursday

Markets in Asia finished mixed on Wednesday, with traders keeping their wallets closed ahead of a hat-trick of major events on Thursday - the UK general election, a review from the European Central Bank, and the scheduled testimony from former FBI director James Comey to the US Senate.

In Japan, the Nikkei 225 was ahead 0.02% at 19,984.62, as the yen strengthened sharply during the session to reach a peak of JPY 109.13 against the greenback.

The safe haven currency had since weakened somewhat, losing 0.03% to last trade at JPY 109.44.

On the mainland, the Shanghai Composite was up 1.24% at 3,140.52, while the Shenzhen Composite added 2.19% to 1,850.53.

South Korea’s Kospi was down 0.36% at 2,360.14, while Hong Kong’s Hang Seng Index was off 0.09% to close at 25,974.16.

Close to home, the most recent polls pointed to expectations that Theresa May would comfortably prevail in Thursday’s election, after some polls in late May suggested her Conservative Party could lose its parliamentary majority.

Over the channel, the European Central Bank was set to conduct a monetary review on Thursday, with markets hoping for more positive rhetoric around the eurozone.

And across the pond, James Comey was set to testify in front of the Senate Intelligence Committee on Thursday, over whether President Donald Trump attempted to intervene in an investigation into ex-national security advisor Michael Flynn.

Investors spent the day clambering for safe havens ahead of the risk events, with spot gold floating around the highs seen on Tuesday, US Treasury 10-year yields lower and the aforementioned yen stronger against the greenback.

“With the UK election, ECB meeting and Comey's testimony just around the corner, we don't bank on a quick reversal of fortune for the dollar/yen just yet,” noted ThinkMarkets senior market analyst Matt Simpson on Wednesday.

Oil prices were lower after some small gains overnight, with markets still reacting to the ongoing diplomatic tension between Qatar and several of its Middle Eastern neighbours.

Brent crude was last down 0.66% at $49.79 per barrel, and West Texas Intermediate lost 0.56% to $47.92.

Australia’s S&P/ASX 200 finished down 0.01% at 5,667.17, with fresh economic data showing real GDP was up 0.3% quarter-on-quarter in the first quarter.

It rose 1.7% year-on-year - ahead of the 1.5% forecast.

Over the Tasman Sea, the S&P/NZX 50 lost 0.4% to close at 7,467.90, led lower once again by subscription broadcaster Sky - not related to its London-listed namesake - which lost 4%.

It came after Aussie investment bank UBS revealed it had sold down around 1% of its stake in the broadcaster, which had faced concerns about subscriber churn and its ability to keep up with streaming technology during the lucrative southern hemisphere rugby season.

Both of the down under dollars were ahead on the greenback, with the Aussie strengthening 0.65% to AUD 1.3235 and the Kiwi advancing 0.11% to NZD 1.3905.