Asia report: Markets mixed amid concerns over UK stability

Markets closed in a mixed state in Asia on Thursday, after a stellar session on Wall Street overnight saw the Dow add more than 500 points.

In Japan, the Nikkei 225 was up 0.95% at 26,422.05, as the yen weakened 0.36% against the dollar to last trade at JPY 144.68..

Robotics specialist Fanuc was down 0.86%, as Uniqlo owner Fast Retailing rose 2.17%, and tech investing giant SoftBank Group added 1.88%.

The broader Topix index was 0.74% higher by the end of trading in Tokyo, settling at 1,868.80.

On the mainland, the Shanghai Composite slipped 0.13% to 3,041.20, and the technology-centric Shenzhen Component managed gains of 0.18% to 10,919.44.

China’s central bank issued a warning against betting on the yuan during the session, after it slid rapidly against the dollar in recent days.

“Do not bet on a one-sided appreciation or depreciation of the renminbi exchange rate,” said People’s Bank of China vice-governor Liu Guoqiang in a speech translated by CNBC.

South Korea’s Kospi eked out a rise of 0.08% to 2,170.93, while the Hang Seng Index in Hong Kong slipped 0.61% to 17,146.48.

Debuts were the theme of the day in the special administrative region, with electric vehicle maker Leapmotor tumbling 33.5% from its offer price of HKD 48.

Property developer China Vanke floated its subsidiary Onewo as well, which fell 6.8% from its offer price of HKD 48 during the session.

The blue-chip technology stocks were on the back foot in Seoul, with Samsung Electronics down 0.57%, and SK Hynix off 0.49%.

Sentiment in the region was given a boost by a strong session stateside overnight, where the Dow Jones Industrial Average popped 548.75 points, or 1.88%, to 29,683.74.

The positive moves came after the Bank of England said it was intervening in the bond market on Wednesday, buying up long-dated gilts in a bid to shore up surging yields and a plummeting pound.

“The pound has settled around $1.07 and the yields on 10 year gilts are still hovering around 50 basis points lower than the high they hit of 4.6% before the Bank stepped in,” said Hargreaves Lansdown senior investment and markets analyst Susannah Streeter.

“But it hasn’t moved the dial that much in terms of the UK’s economic outlook.

“It did help calm Wall Street and traders in Asia, with worries about contagion easing.”

In Australia, the S&P/ASX 200 jumped 1.44% to 6,555.00, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was ahead 0.72% at 11,200.04.

The down under dollars were both weaker against the greenback, with the Aussie last off 0.85% at AUD 1.5462, and the Kiwi retreating 0.78% to NZD 1.7588.

Reporting by Josh White at Sharecast.com.