Asia report: Markets mixed as Samsung begins serious damage control

Markets in Asia finished mixed on Thursday, with traders focusing on oil prices, as well as the news that Samsung Electronics was set to halt all production of its Galaxy Note 7 smartphone after more fire concerns.

Japan’s Nikkei finished up 0.98% at 17,024.76, with a weaker yen and stronger oil prices driving the domestic benchmark.

Airbag maker Takata was a notable exception, however, falling 7.47% following reports stateside that the company was mulling over a bankruptcy filing in that country, in a bid to find an external investor to play suitor to the beleaguered firm.

The yen weakened after markets closed in Tokyo, and was last off 0.23% against the greenback at JPY 103.85 per $1.

On the mainland, the Shanghai Composite added 0.59% to 3,066.09, while the Shenzhen Composite was up 0.51% at 2,043.69.

In South Korea, the Kospi finished down 1.21% at 2,031.93, though the Hang Seng Index in Hong Kong lost 1.27% to close at 23,549.52.

Samsung Electronics shares plummeted 8.04% after it emerged the technology behemoth was requesting its distribution and network partners to halt all sales of the Galaxy Note 7 phablet, and was advising users to stop using their devices.

It came after reports over the weekend that replacement devices - handed out as part of an earlier recall due to concerns the first wave of phones were fire prone - were also combusting.

Samsung confirmed during the Asian day on Monday that it was scaling down volumes on the device to focus on quality control, though chatter persisted that it was halting production altogether.

The Monetary Authority of Singapore kept the city-state on the markets map for Tuesday, as it ordered Swiss firm Falcon Private Bank to cease trading in the country over concerns about the way it managed funds tied to the controversial Malaysian sovereign fund, 1Malaysia Development Berhad.

It came after the authority also ordered the same of Swiss private bank BSI in May over similar alleged breaches, followed by the recent filing of charges against specific persons attached to the 1MDB scandal.

DBS Bank and UBS Singapore were handed down fines on Monday as well, for breaches of anti-money laundering laws, as the central bank flexed it's muscle.

On Tuesday, DBS Bank shares were down 0.46%, while OCBC Bank fell 0.35% and United Overseas Bank was off 0.16% in Singapore.

Oil prices rose overnight and into the Asian day as the OPEC production freeze received the support of Russia, though they fell back again slightly as Asia handed the baton to Europe.

Brent crude was last down 0.66% at $52.79 per barrel and West Texas Intermediate lost 0.51% to $51.09.

Australia’s S&P/ASX 200 added 0.08% to close at 5,479.80, with a 2.3% boost to the energy subindex underpinning the benchmark, alongside a 0.94% jump in the materials sector.

Of the major miners, BHP Billiton added 1.71% in Sydney trading, Fortescue Metals was 2.98% higher and Rio Tinto improved 2.09%.

The boost to the sector came after steel and iron ore futures in China rebounded from lows on Monday, which was a reaction to rumour that Beijing was no longer looking to stem the flow of property purchases.

Conditions for business also appeared rosier in the sunburnt country, with National Australia Bank’s monthly survey for September suggesting higher sales, profits and more forward orders across the board.

The major energy firms were higher, with Santos up 3.96% and Oil Search adding 3.38% during the session as a result of the higher oil prices.

In New Zealand, the S&P/NZX 50 broke its downward streak, adding 0.1% to 7,124.24.

The great southern chicken fiasco broke as well, with Tegel Holdings rising 2.1% after weeks of heading downwards.

Analysts have suggested one or more institutional investors were forcing the chicken producer’s stock south in a bid to encourage a lower IPO price for its Australian competitor Ingham.

The down under dollars were driven weaker by comments from the Reserve Bank of New Zealand about the need for further easing, as the country’s agrarian economy continues to lack momentum.

Australia’s ‘dollarydoo’ was last 0.74% weaker at AUD 1.3243 against the greenback, while the Kiwi was off 0.94% at NZD 1.4144 per $1.