Asia report: Markets mixed as investors look to Fed
Markets in Asia finished mixed on Tuesday, with the greenback leading global traders as expectations for a rate rise from the Federal Reserve in December increasing.
Japan’s Nikkei 225 was almost flat, finishing down 0.03% at 17,668.15, with the yen heading weaker against the greenback during the session.
It gained some strength as the region went to bed, however, and was last ahead 0.14% at JPY 108.27 per $1.
“Although Japanese GDP growth more than doubled expectations in the third quarter, dollar/yen rose as high as 108 ... Trump's victory was a game changer for the dollar and stocks,”noted BK Asset Management managing director of foreign exchange strategy Kathy Lien.
“Hitting 110 is not only possible but likely for dollar/yen but rather than chase the move it may be smarter to wait for a pullback towards 107.”
On the mainland, the Shanghai Composite was off 0.11% at 3,206.73, while the Shenzhen Composite finished 0.48% firmer at 2,124.40.
Investors in China were eagerly awaiting the foreign direct investment figures for October, due to be released after the close.
South Korea’s Kospi was down 0.35% at 1,967.53, while the Hang Seng Index in Hong Kong was up 0.46% at 22,323.91.
On the corporate front in Seoul, Hanjin Shipping was up 3.55% as traders reacted to the news on Monday that Korea Line was the preferred bidder for the beleaguered line’s shipping operations between Asia and North America.
Samsung Electronics lost 0.9% after it announced it would pay $8bn for automotive electronics supplier Harman International Industries.
Oil prices were ahead during Asian trading, with Brent crude last up 1.83% at $45.26 per barrel, and West Texas Intermediate adding 2.28% at $44.33.
In Australia, the S&P/ASX 200 finished 0.37% softer at 5,326.20, with the healthcare and materials subindexes dragging the chain, down 1.53% and 1.05% respectively.
New Zealand’s S&P/NZX 50 was up for the second day in a row, adding 0.5% to settle at 6,770.42, with construction giant Fletcher Building receiving a 2.5% boost as the repair bill to Sunday night’s swarm of fatal earthquakes reaches into the billions of NZD.
The country’s state statisticians were due to release the retail trade survey for the September quarter on Tuesday, but it was postponed until further notice as Statistics New Zealand assessed damage to their headquarters in the capital Wellington.
It’s understood Statistics House - a brand new building constructed so the statistics office could move out of its old earthquake-prone premises - had two floors collapse within it during the tremors, though it was unoccupied at the time.
A number of major statistics releases were similarly delayed after the Christchurch earthquakes in 2010 and 2011, when the agency’s Christchurch office was practically a write-off.
The down under dollars told a mixed story, with the Aussie last 0.07% stronger at AUD 1.3227 against the greenback, and the Kiwi weakening 0.08% to NZD 1.4059 per $1.