Asia report: Markets mixed as Japan's export growth beats forecasts

Markets in the Asia-Pacific region showed a mixed performance on Wednesday as investors reacted to Wall Street’s losses and scrutinized key economic data from Japan.

The region also awaited central bank decisions, including the Federal Reserve and the Bank of Japan later this week.

“Asian stocks saw a slight increase in a stable trading environment as investors prepared for the Federal Reserve's last policy decision of the year,” said Patrick Munnelly at TickMill.

“The MCSI Asian regional stock index rose by 0.3% after a three-day decline, with gains in Hong Kong and mainland China balancing losses in Japan and Australia.

“Nissan's shares soared by as much as 24%, marking the largest increase since at least 1974, amid speculation that the struggling car manufacturer may be contemplating a merger with Honda, whose stock experienced a decline.”

Markets in a mixed state as Chinese equities rise

In Japan, the Nikkei 225 fell 0.72% to 39,081.71, while the Topix declined 0.32% to 2,719.87.

Japan’s exports in November grew beyond expectations, but a sharp decline in imports raised concerns over domestic demand.

Major decliners included Sumitomo Dainippon Pharma, Nissan Chemical Industries, and SoftBank Group, which lost 4.46%, 4.24%, and 4.1%, respectively.

China's markets fared better, with the Shanghai Composite gaining 0.62% to 3,382.21 and the Shenzhen Component up 0.44% to 10,584.27.

Gains in Shanghai were led by Anyang Iron & Steel, Shanghai Shenda, and Shanghai Jiao Yun Group, all surging over 10%.

The Hong Kong Hang Seng Index rose 0.83% to 19,864.55, supported by advances in Li Auto, Geely Automobile Holdings, and Hansoh Pharmaceutical Group, which gained 5.45%, 4.12%, and 3.94%, respectively.

In South Korea, the Kospi 100 outperformed the region with a 1.49% increase to 2,485.07.

SK Bioscience jumped 8.65%, while Kia Corporation and Doosan Bobcat both advanced over 6%.

Australia’s S&P/ASX 200 was relatively flat, dipping 0.06% to 8,309.40.

Healthcare and financial stocks weighed on the index, with Regis Healthcare and Insignia Financial losing over 4%.

The S&P/NZX 50 in New Zealand slid 0.38% to 12,865.55, dragged down by declines in Restaurant Brands New Zealand, Kiwi Property Group, and Freightways.

In currency markets, the dollar was last up 0.15% on the yen, trading at JPY 153.69, as it strengthened 0.35% against the Aussie to AUD 1.5835, and advanced 0.36% on the Kiwi to NZD 1.7443.

Oil prices edged higher, with Brent crude futures last up 0.77% on ICE to $73.75 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.87% to $70.69.

Japanese exports beat expectations, imports miss by a wide margin

In economic news, Japan’s exports grew 3.8% year-on-year in November, outpacing expectations of a 2.8% increase, signaling resilience in external demand despite global economic uncertainties.

However, imports contracted by 3.8%, far below the anticipated 1% growth, underscoring weaker domestic consumption.

Japan’s trade balance remained in deficit, amounting to JPY 117.6bn, exceeding expectations of a JPY 688.9bn shortfall.

The figures came as markets awaited the Bank of Japan's monetary policy decision later this week.

Meanwhile, Hong Kong’s stock market staged a strong recovery in fundraising activities this year, driven by renewed confidence among investors and Chinese companies seeking capital amid Beijing’s commitment to supporting the offshore market.

The Hong Kong stock exchange raised $10.65bn across 63 deals in 2024, an 80% surge from the $5.89bn recorded in 2023, according to Dealogic.

That marked a reversal after three years of declining activity, with the average deal size nearly doubling to $169m.

Reporting by Josh White for Sharecast.com.