Asia report: Markets mixed as investors digest US tax plan

Markets in Asia finished mixed on Thursday, as investors turned their attention stateside and digested the release of the much-anticipated tax reform plan from the Trump administration.

In Japan, the Nikkei 225 was ahead 0.47% at 20,363.11, as the yen strengthened 0.15% against the dollar to last trade at JPY 112.67.

Delivery service provider Yamato Holdings was ahead 2.11% in Tokyo, after reports the company could have convinced Amazon to pay more for using their shipping services.

Carmakers were mixed, as media reported that Mazda, Toyota and parts maker Denso were looking to form an electric vehicle joint venture.

Denso was ahead 1.82%, Mazda added 3.08% and Toyota was up 0.31%, while Nissan was down 1.15% and Suzuki lost 0.93%.

On the mainland, the Shanghai Composite was down 0.15% at 3,340.12, and the smaller, technology-heavy Shenzhen Composite was off 0.23% at 1,974.78.

South Korea’s Kospi eked out gains of 0.02% to 2,373.14, while the Hang Seng Index in Hong Kong was down 0.8% at 27,421.60.

Blue-chip technology stocks turned largely red in Seoul, led by Samsung Electronics which was off 0.81% - although SK Hynix outperformed the sector to finish up 0.97%.

China-based insurer ZhongAn Online made its Hong Kong debut on Thursday, with its stock rocketing more than 10% above issue price during the afternoon.

Investors were looking towards Washington, where Republicans released details of their tax reform plan overnight.

The framework included proposals to bring the highest individual federal tax rate to 35% from 39.6%, as well as reducing corporation tax to 20% from 35%.

“It's still going to be a long road to congressional approval and the changes that we've seen so far are less encouraging than his campaign promises,” noted BK Asset Management managing director for FX strategy Kathy Lien.

Oil prices were lower during Asian trading, but picked up again as Europe took the trading baton with Brent crude last ahead 0.84% at $58.39 per barrel and West Texas Intermediate adding 1.14% to $52.74.

In Australia, the S&P/ASX 200 was up 0.11% at 5,670.38, with the healthcare and utilities sectors joining the hefty financials subindex at the top end.

Banks were largely ahead, with National Australia Bank rising 0.54% and Westpac Banking Corporation 0.56% firmer.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was virtually flat, falling 0.002% to 7,913.62.

The Reserve Bank of New Zealand stood pat on interest rates, keeping the official cash rate at 1.75%, adding in its rhetoric that a weaker New Zealand dollar would help push inflation towards its 1-3% target.

That was a softening of language from its August statement, in which it described a softer Kiwi dollar as being “needed”.

Looking at the down under dollars, the Kiwi was bobbing above and below the waterline after that statement and was last 0.09% weaker against the greenback at NZD 1.3898, while the Aussie retreated 0.31% to AUD 1.2781.