Asia report: Markets mixed as tech stocks surge

Markets in Asia were mixed on Wednesday, with the technology sector receiving a particular boost after the release of broadly positive third quarter numbers from US electronics giant Apple overnight.

Japan’s Nikkei 225 was ahead 0.47% at 20,080.04, as the yen lost ground against the dollar, last weakening 0.35% to JPY 110.75.

Big market movers in Tokyo on Wednesday included carmaker Honda and electronics giant Sony, after both firms reported first quarter results after markets closed on Tuesday.

Honda beat earnings expectations while Sony reported record profit, with shares in the Civic maker rising 3.49%, while the former Walkman producer lost 1.93%.

On the mainland, the Shanghai Composite was down 0.2% at 3,286.02, and the smaller, technology-heavy Shenzhen Composite was 0.7% softer at 1,869.32.

South Korea’s Kospi finished 0.19% higher at 2,427.63, while the Hang Seng Index in Hong Kong added 0.24% to 27,607.38.

Seoul tech firms were boosted by Cupertino, with chipmaker SK Hynix up 3.82%, while LG Display was ahead 1.75% and LG Innotek rocketed 10.37%.

A number of Taiwanese technology firms were also up, with Hon Hai Precision Industry - better known as Foxconn, which assembles the iPhone - up 1.72%, and Taiwan Semiconductor rising 1.89%.

Gambling stocks were the focus in Hong Kong, after reports from Macau that gross gaming revenues in the region were up 29% year-on-year in July.

That improvement was ahead of forecasts for a 28% rise from Nomura, but below other forecasts for an uptick of 30%.

Most gambling stocks traded lower in Hong Kong, with SJM Holdings finishing down 5.66%, Melco International Development falling 2.07% and Wynn Macau off 1.65%.

Apple beat on both the top and bottom lines in its third quarter results after the closing bell in New York overnight, after selling more iPhones than expected at 41 million in the quarter.

That led to a surge in many tech stocks in Asia, particularly for those companies which supply components for Apple products.

Oil prices were lower during Asian trading, with Brent crude last down 0.04% at $51.76 per barrel, and West Texas Intermediate down 0.2% at $49.06.

In Australia, the S&P/ASX 200 lost 0.49% to close at 5,744.20, with small gains in the industrials subindex offset by falls in the weighty financials sector, as well as in energy and materials.

New Zealand’s benchmark S&P/NZX 50 reached a new record high, rising 0.24% to 7,748.91, led higher by accounting software firm Xero, which was up 3.2%.

Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.05% at AUD 1.2555, and the Kiwi retreating 0.58% at NZD 1.3469.