Asia report: Markets mixed as Aussie inflation figures disappoint
Most markets in Asia finished higher on Wednesday, as inflation figures missed expectations in Australia, sending the Aussie dollar plummeting.
In Japan, the Nikkei 225 finished down 0.45% at 21,707.62, breaking its 16-day winning streak as the yen weakened 0.18% against the dollar to last trade at JPY 114.11.
On the mainland, the Shanghai Composite was up 0.3% at 3,398.30, and the smaller, technology-centric Shenzhen Composite added 0.78% to 2,025.32.
China’s Communist Party revealed the country’s new leadership on Wednesday, with President Xi Jinping and Premier Li Keqiang the only two members of the new Politburo Standing Committee remaining from the previous one.
South Korea’s Kospi eked out gains of 0.08% to 2,492.50, while the Hang Seng Index in Hong Kong was up 0.53% at 28,302.89.
Earnings were top of the agenda in Seoul, with LG Display shares finishing up 0.17% after it reported an 81% year-on-year surge in third quarter profit.
Investors were also looking to the US, where the much-trumpeted tax reform was making headlines once again.
CNBC reported an unnamed source as claiming House Republicans would introduce their tax bill on 1 November, following an already-flagged vote on a budget measure.
Market watchers were also keeping a close eye on who President Donald Trump would pick to follow Janet Yellen as the next Federal Reserve chair.
Trump apparently attempted to poll Senate Republicans at a lunch on Thursday, with Stanford University economist John Taylor reportedly coming our favourably, although a number of senators reportedly refused to give their opinion to Trump.
Oil prices were mixed during Asian trading, with Brent crude last up 0.03% at $58.35 per barrel and West Texas Intermediate down 0.31% at $52.31.
In Australia, the S&P/ASX 200 was up 0.14% at 5,905.60, with the energy and materials sectors leading gains, rising 1.24% and 1% respectively.
Third quarter inflation for the sunburnt country was released on Wednesday, with the consumer price index up 1.8% in the period, missing expectations for a 2% uptick.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 broke its own 15-day winning streak to close down 0.09% at 8,122.67, led lower by construction conglomerate Fletcher Building.
The company revealed it was struggling with two major projects - the International Convention Centre in Auckland and the Justice Precinct in Christchurch - with its B+I division expected to make a full-year loss of NZD 160m.
It also took a further NZD 125m provision against the problem contracts, having already issued two profit warnings in the current financial year.
The down under dollars were both weaker against the greenback, with the Aussie plunging 0.75% to AUD 1.2957 on the back of the inflation figures, while the Kiwi retreated 0.32% to NZD 1.4530.