Asia report: Markets mixed as China announces stimulus measures

Markets were mixed in Asia on Wednesday, with Chinese bourses bouncing higher as investors reacted to a series of stimulus measures revealed by Beijing on Tuesday.

In Japan, the Nikkei 225 was down 0.6% at 21,596.81, as the yen strengthened 0.13% against the dollar to last trade at JPY 111.74.

The broader Topix index was off 0.25% in Tokyo, to finish the session at 1,615.25.

Fashion retail conglomerate Fast Retailing, which owns the popular Uniqlo brand, was off 2.51%.

On the mainland, the Shanghai Composite jumped 1.57% to 3,102.10, and the smaller, technology-heavy Shenzhen Composite added 1.49% to 1,660.41.

A day earlier, China’s authorities announced a boost in infrastructure spending, as well as CNY 2trn in cuts to taxes and regulatory fees, in a bid to prop up growth in the People’s Republic.

South Korea’s Kospi was off 0.17% at 2,175.60, while the Hang Seng Index in Hong Kong rose 0.26% to 29,037.60.

The blue-chip technology stocks went with the trend in Seoul, with Samsung Electronics clawing back some of its earlier losses but still falling 0.56%.

Sentiment around trade was still relatively rosy, two days after US Secretary of State Mike Pompeo said he believed Washington and Beijing were “on the cusp” of reaching a mutual agreement.

“We're trying to get that rectified, get that fixed, make it fair and reciprocal and I think we're on the cusp of doing that and I hope all those tariffs will go away, all those barriers,” Pompeo said.

Oil prices were lower as the region went to bed, with Brent crude last down 0.15% at $65.76 per barrel, and West Texas Intermediate falling 0.82% to $56.10.

In Australia, the S&P/ASX 200 rose 0.75% to 6,245.60, as fresh data showed a serious slowdown in the sunburnt country’s economy.

GDP growth in the fourth quarter was 0.2%, which was lower than the 0.3% markets were expecting, according to the statistics from Canberra.

It was blamed on a trend for Australians to spend less, and as activity in the residential construction sector contracted.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was ip 0.2% at 9,415.00.

Sentiment in Wellington was given a boost by a stronger-than-expected dairy products auction in the hours before the market opened, given dairy is one of the country’s primary industries.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.63% at AUD 1.4204, and the Kiwi retreating 0.27% to NZD 1.4748.