Asia report: Markets mixed as Toshiba considers semiconductor sale

Markets in Asia finished mixed on Thursday, with Japanese technology giant Toshiba plummeting over rumours it was looking at selling its semiconductor division.

Japan’s Nikkei 225 finished 0.94% higher to settle at 19,072.25, with a weaker yen giving the major exporters another boost.

The yen was last 0.03% weaker against the greenback at JPY 114.68 per $1.

Of the major exporters, Honda was up 2.5%, Sharp was boosted 4.59% and Toyota was 1.77% firmer.

Toshiba stocks fell 15.98% after reports in Japan that the company was considering spinning off its semiconductor division as a separate business, and selling a chunk of it to Western Digital.

The company did not confirm or deny the reports, only saying they were not based on any announcements made by Toshiba.

Embattled airbag maker Takata had its shares suspended from trading during the session by the Japan Exchange Group.

The suspension followed local media reports that some of the sponsors of Takata’s turnaround plan had requested court involvement in the process.

It’s understood the request was supported by carmakers, who have beared the brunt of the recall costs for Takata’s faulty and potentially fatal airbags.

On the mainland, the Shanghai Composite was 0.36% lower at 3,101.70, while the Shenzhen Composite was 0.38% softer at 1,857.45.

South Korea’s Kospi finished up 0.11% at 2,072.79, while all eyes on the peninsula were on one of its biggest conglomerates.

Shares in Samsung Group companies had a turbulent day, after a request from the country’s special prosecutor’s office for an arrest warrant for group chief Jay Lee was quashed by the courts.

Investigators into the corruption scandal enveloping impeached President Park Geun-hye had wanted to keep Lee in custody for his alleged involvement in the cash-for-influence rort while they continued their inquiries.

Samsung Electronics shares finished 1.5% higher, Samsung Electro-Mechanics was down 0.8%, Samsung Engineering fell 2.7%, Samsung SDI finished 6.2% lower and Samsung C&T shares were 0.8% firmer.

Hong Kong’s Hang Seng Index finished down 0.21% at 23.049.96.

Overnight, US Federal Reserve chair Janet Yellen released prepared remarks saying the domestic economy was moving towards the central bank’s own goals, hinting that it may soon end the very high levels of support it has provided since the credit crunch in 2007.

Her remarks pushed the dollar significantly higher.

“Unless Donald Trump attacks the dollar again on Friday, we have seen the end to a month of losses in the greenback,” noted BK Asset Management director of foreign exchange Kathy Lien.

Oil prices were higher during Asian trading, with Brent crude last up 0.88% at $54.40 per barrel and West Texas Intermediate adding 0.87% to $51.53.

Australia’s S&P/ASX 200 was up 0.24% to 5,692.18, led by farmer co-operative Bega Cheese, which surged 15.18%.

It came after the company confirmed it was buying the Australia and New Zealand grocery products operation of Mondelez International, including the thick savoury Vegemite spread.

New Zealand’s benchmark S&P/NZX 50 rose 0.04% to 7,062.36, led higher by accounting software firm Xero, after chairman Chris Liddell revealed he was stepping down at the end of the week to take up a role in the Trump administration in the US.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.62% at AUD 1.3241 and the Kiwi strengthening 0.68% at NZD 1.3943.