Asia report: Markets mixed as sentiment remains muted

Markets in Asia finished their respective sessions in a mixed state on Monday, as investors began another week exercising caution over the state of global markets and geopolitical tensions, after both the US and China released disappointing data last week.

In Japan, the Nikkei 225 was up 0.47% at 21,125.09, as the yen weakened 0.03% against the dollar to last trade at JPY 111.20.

The broader Topix index was 0.57% higher in Tokyo, ending the day at 1,581.44.

Shares in carmaker Nissan were ahead 1.11%, as the firm’s former chairman Carlos Ghosn was apparently seeking permission in the courts to attend its board meeting on Tuesday.

Ghosn was released last week after spending more than 100 days in custody on financial misconduct charges, which he was described as being without merit.

On the mainland, the Shanghai Composite added 1.92% to close at 3,026.99, and the smaller, technology-heavy Shenzhen Composite surged 3.89% to 1,667.81.

Traders in China were reacting to reports over the weekend that the country’s central bank was looking to ease monetary policy in a bid to underpin the slowing economy.

Yi Gang, the governor of the People’s Bank of China, was quoted as saying that the bank would not use renminbi’s loose peg as a tool to support exports, or ongoing trade negotiations with the US, however.

South Korea’s Kospi eked out gains of 0.03% to 2,138.10, while the Hang Seng Index in Hong Kong rose 0.97% to 28,503.30.

Sentiment was muted at the start of the week in Asia, after data out of both the US and China missed expectations on Friday.

The American jobs market added 20,000 positions in February, falling well short of forecasts for a rise of 180,000, and making for the weakest month of job creation in almost 18 months.

Across the Pacific Ocean, exports fell 20.7% month-on-month in China in February, and imports slid 5.2%.

Both of those readings were wider than expectations for falls of 4.8% and 1.4%, respectively.

“The data is prone to large revisions, and other labour market indicators remain strong,” noted ANZ Research analysts on the US data.

“Nonetheless, it is plausible that the more mixed US data in recent months could be starting to flow through into labour demand.”

Oil prices were higher as the region went to bed, with Brent crude last up 0.99% to $66.40 per barrel, and West Texas Intermediate adding 0.94% to $56.60.

In Australia, the S&P/ASX 200 was down 0.38% at 6,180.20, as the energy subindex lost 1.55%.

Of the major energy plays in Sydney, Oil Search lost 1.99%, Santos lost 2.16%, and Woodside Petroleum fell 1.73%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was off 0.5% at 9,390.85, led lower by subscription broadcaster Sky - no relation to its London-listed namesake - which fell 6% to reach a new record low.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.13% at AUD 1.4171, and the Kiwi advancing 0.33% to NZD 1.4649.