Asia report: Markets mixed as SoftBank makes bid for Uber shares

Markets in Asia finished their sessions mixed on Tuesday, after a similarly mixed session on Wall Street overnight, with a major offer out of Japan for embattled minicab service Uber high on the agenda.

In Japan, the Nikkei 225 was down 0.04% at 22,486.24, as the yen weakened 0.2% against the dollar to last trade at JPY 111.31.

Carmakers and big technology names were the big losers in Tokyo, as were energy plays as oil prices slipped.

Defence stocks were higher, however, amid reports that Japanese intelligence officials had intercepted radio signals suggesting North Korea was preparing a ballistic missile launch.

Hoya Machinery rocketed ahead 12.51%, and Ishikawa Seisaku piled on 8.43%.

SoftBank proposed to buy $48bn of shares in Uber at a 10% discount, Reuters reported on Tuesday.

Shares in the technology and telecoms giant were down 0.25%.

Japan’s apparent data falsification epidemic continued apace, with Toray Industries reported to have faked data at its subsidiary Toray Hybrid Cord for products sold to 13 clients over eight years.

In recent weeks, Kobe Steel and Mitsubishi Materials have been caught up in data falsification scandals of their own.

Shares in Toray were down 5.3% at the end of the Tokyo session.

On the mainland, the Shanghai Composite was ahead 0.34% at 3,333.66, and the smaller, technology-heavy Shenzhen Composite was 1.35% frimer at 1,918.32.

South Korea’s Kospi finished up 0.25% at 2,514.19, while the Hang Seng Index in Hong Kong lost just 0.02% to close at 29,680.85.

Seoul technology giant Samsung Electronics reversed losses sustained earlier in the session, to close 1.22% above the waterline.

It had fallen more than 5% on Monday following a downgrade from Morgan Stanley.

Other tech names in Seoul were lower, with LG Display losing 0.16% and SK Hynix off 0.6%.

US tax reform was the focus early in the session, with a vote on plans expected in the Senate on Thursday.

It was looking likely to pass, after Kentucky Republican senator Rand Paul said he would vote in favour despite lingering concerns.

If the Senate passes its tax reform, it would then need to come to an agreement with the House of Representatives, which passed its own different tax reform proposals in 16 November, before anything could be put into law.

Oil prices were under pressure, with Brent crude last down 0.92% at $63.26 per barrel and West Texas Intermediate off 0.8% at $57.65.

“Based on the early readings of the OPEC meeting, and statements from Russia's oil minister, it looks as if an agreement to extend to end-2018 is nearly concluded after talks ahead of the full session,” noted Wood Mackenzie vice-president of macro oils Louise Hittle.

In Australia, the S&P/ASX 200 was off 0.08% at 5,984.25, led lower by the telecommunications subindex as well as the major miners.

BHP lost 2.04% in Sydney trading, while Rio Tinto fell 0.76%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was off 0.4% at 8,141.49, led lower by energy supplier and retailer Mercury, which was off 2.6%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.05% at AUD 1.3147, and the Kiwi advancing 0.26% to NZD 1.4430.