Asia report: Markets mixed as investors watch easing of lockdowns

Markets in Asia finished in a mixed state on Monday, as investors digested the latest developments on the Covid-19 coronavirus front, with a number of jurisdictions lifting some of the social and economic restrictions put in place to combat the pandemic.

In Japan, the Nikkei 225 was up 1.05% at 20,390.66, as the yen weakened 0.56% against the dollar to last trade at JPY 107.25.

Automation specialist Fanuc saw its shares lose 0.42%, while among the benchmark’s other major components, fashion firm Fast Retailing surged 3.18%, and technology conglomerate SoftBank Group was ahead 0.36%.

The broader Topix index also finished the session in the green, rising 1.53% to settle at 1,480.62.

On the mainland, the Shanghai Composite fell 0.02% to 2,894.80, and the smaller, technology-heavy Shenzhen Composite was 0.24% weaker at 1,804.74.

South Korea’s Kospi slipped 0.54% to 1,935.40, while the Hang Seng Index in Hong Kong advanced 1.53% to 24,602.06.

Both of the blue-chip technology stocks were weaker in Seoul, with Samsung Electronics down 0.82% and chipmaker SK Hynix off 0.59%.

The ongoing Covid-19 pandemic continued to grip the attention of investors, with authorities in South Korea warning over the weekend that they were investigating a potential second wave of infections.

It was unwelcome news, just days after Seoul had eased social and economic restrictions, having previously been applauded by many health experts globally for its handling of the pandemic.

Stateside, US Treasury secretary Steven Mnuchin said on Sunday that the number of unemployed in the US would likely “get worse before they get better”, adding that the jobless rate in the country could have already reached 25%.

He said the Trump administration was now concentrating on reopening the US economy, after Friday’s nonfarm payrolls report revealed a record 20.5 million job losses nationwide in April.

“Equity markets in Asia gained ground overnight on the back of optimism in relation to countries loosening their lockdown restrictions,” said CMC Markets analyst David Madden.

“South Korea and Germany reported an increase in new infections in the wake of their restrictions being eased.

“This is something that traders should be mindful of as it might curtail the reopening of other economies for fear of a second wave of cases.”

Oil prices were weaker as the region went to bed, with Brent crude last down 2.49% at $30.20 per barrel, and West Texas Intermediate off 2.02% at $24.24.

In Australia, the S&P/ASX 200 added 1.3%, to end the day in Sydney at 5,461.20, although the major banks were in a mixed state.

Australia and New Zealand Banking Group was up 0.51%, Commonwealth Bank of Australia added 0.91% and Westpac Banking Corporation grew 0.77%, while National Australia Bank lost 0.62%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 rose 0.6% to 10,760.29, led higher by subscription broadcaster Sky - not related to its London-based namesake - which rocketed 20.3%.

It came after the country’s governing body for rugby - its most popular sport - confirmed a limited season of domestic competition titled ‘Super Rugby Aotearoa’ as kicking off on 13 June.

The tournament will feature the five New Zealand teams that usually play in the five-nation Super Rugby competition, and will prove a boon for Sky as one of the few sports being played, with no live spectators permitted at venues.

Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.6% at AUD 1.54, and the Kiwi retreating 0.87% to NZD 1.6428.