Asia report: Markets mixed as Japan exports beat forecasts

Asia-Pacific markets experienced mixed performances on Wednesday as investors digested China’s decision to maintain its benchmark lending rates and Japan’s stronger-than-expected trade data.

The session followed a volatile day on Wall Street amid escalating geopolitical tensions in Eastern Europe.

“On Tuesday, global markets were roiled by geopolitical tensions; however, the situation stabilised as the US trading session progressed, resulting in a more optimistic atmosphere in Asia on Wednesday,” said Patrick Munnelly at TickMill.

“Although tensions between the United States and Russia regarding Ukraine continue to be a source of concern, the global landscape appears to be relatively positive.

“This evening, Nvidia's earnings announcement is eagerly anticipated by investors.”

Munnelly noted that markets were predicting Nvidia, the world's largest company, would report robust financial results, with a projected 82.8% increase in revenue from the previous year, adding that expectations were high as the company's shares have already surged 5% overnight.

“Trading in options suggests a potential swing of nearly $300bn in market value, which could lead to a potentially chaotic trading session ahead.

“Bitcoin surpassed $94,000 for the first time, driven by expectations that the incoming US president-elect Donald Trump's administration will be favourable towards cryptocurrencies.

“Trump is yet to announce his choice for Treasury secretary, but the announcement could come as early as Wednesday.”

Markets finish mixed as investors await Nvidia results

Japan’s Nikkei 225 declined by 0.16% to close at 38,352.34, while the broader Topix index fell 0.43% to 2,698.29.

Trade data for October showed export and import growth surpassing forecasts, reflecting resilience in external demand and domestic activity.

Shares of Tokio Marine fell 6.99%, leading losses alongside MS&AD Insurance Group, which dropped 4.92%.

On the upside, Seven & i Holdings rose 6.52% after reports suggested the founding family planned to privatise the owner of 7-Eleven in a $51.66bn buyout.

The potential acquisition, funded by Japanese megabanks and US financial institutions, would be the largest in Japan’s history.

China’s Shanghai Composite increased by 0.66% to 3,367.99, and the Shenzhen Component gained 0.78% to 10,827.19, after the People’s Bank of China held its lending rates steady following October’s rate cuts.

Suzhou HYC Technology surged 13.62%, while Wuxi Commercial Mansion Grand Orient rose 10.11%, driving gains in the Chinese markets.

Hong Kong’s Hang Seng Index added 0.21% to finish at 19,705.01.

Shenzhou International Group climbed 6.14%, and Hansoh Pharmaceutical Group advanced 4.08%.

South Korea’s Kospi 100 edged up by 0.36% to close at 2,481.97, driven by gains in healthcare and consumer sectors.

SK Bioscience rallied 7.24%, while Hanjinkal rose 6.58%.

Australia’s S&P/ASX 200 declined by 0.57% to 8,326.30, with Neuren Pharmaceuticals down 7.5% and Redox losing 3.95%.

In New Zealand, the S&P/NZX 50 dropped 0.62% to 12,737.06.

ANZ Group fell 3.6%, and Mercury NZ declined by 3.05%.

In currency markets, the dollar was last up 0.72% on the yen, trading at JPY 155.78, while it added 0.31% against the Aussie to AUD 1.5357, and advanced 0.48% on the Kiwi, changing hands at NZD 1.6997.

On the oil front, Brent crude futures were last up 0.16% on ICE at $73.43 per barrel, while the NYMEX quote for West Texas Intermediate gained 0.45% to $69.70.

Japan exports beat forecasts, PBoC keeps lending rates on hold

In economic news, Japan’s exports rose 3.1% in October compared to a year earlier, marking a significant recovery from the 1.7% decline in September, which had been the lowest in 43 months.

The rebound exceeded economists’ expectations of a 2.2% increase, according to Reuters.

Government data revealed that the sharpest growth was in exports to the Middle East, which surged by 35.4% year-on-year, highlighting strong demand from the region.

Meanwhile, China’s central bank held its benchmark lending rates steady on Wednesday as authorities evaluated the impact of existing stimulus measures on the economy.

The People’s Bank of China kept the one-year loan prime rate at 3.1% and the five-year rate at 3.6%, in line with market expectations.

Economists surveyed by Reuters widely anticipated no changes this month, reflecting a cautious stance as Beijing balanced economic growth with financial stability.

Reporting by Josh White for Sharecast.com.