Asia report: Markets mixed as Toshiba continues free fall

Markets in Asia finished mixed on Wednesday, with South Korea leading the losers and Toshiba continuing a post-Christmas free fall off the back of its Westinghouse write-down.

In Japan, the Nikkei 225 hovered above and below the waterline before finishing flat, closing down 0.01% at 19,401.72.

Official data released during the session showed industrial production in the country improved 1.5% in November over the same time in 2015, just missing the Reuters-polled forecast for a 1.6% uptick.

Retail sales in November were up 1.7%, well ahead of the 0.7% growth prediction.

Technology giant Toshiba plummeted 20.43% during the session, slamming into Tokyo’s daily downwards limit, and almost doubling the rate of its 11.6% fall on Tuesday,

It had announced on Tuesday that it was looking at several billion dollars on one-off charges related to the acquisition of a US-based nuclear power plant development firm.

“With Toshiba's finances already weak, the booking of impairment losses is a negative," noted Nomura analyst Masaya Yamasaki.

“With the amount of losses not yet clear, all the bad news is not out.”

Industrial toolmaker Hitachi Koki was a brighter spot in Tokyo, adding 16.2% after an earlier suspension, following media reports that US private equity vehicle KKR & Co was in final talks with Hitachi to buy the subsidiary.

The yen was weaker against the greenback, and was last off 0.28% at JPY 117.76 per $1.

On the mainland, the Shanghai Composite was down 0.39% to 3,102.54, while the Shenzhen Composite was off 0.37% at 1,972.35.

Hong Kong’s Hang Seng Index finished 0.83% higher at 21,754.74, while South Korea’s Kospi finished down 0.87% at 2,024.49 amid a continuing political crisis.

The latest chapter in the crisis involved the Wednesday morning arrest of the National Pension Service chairman, Moon Hyung-pyo, though the special investigation team did not reveal details.

That arrest followed the taking of two presidential aides into custody in November.

Oil prices were weaker during the Asian session as markets patiently awaited a planned output cut deal from the OPEC cartel and its non-OPEC partners, due to come into play on 1 January.

They bounced back in early Europe trading, however, with Brent crude last up 0.67% at $56.47 per barrel and West Texas Intermediate 0.54% higher at $54.19.

Australia’s S&P/ASX 200 was up 1.01% at 5,685.02, with the gold subindex adding 4.01% and materials propelling 2.32% ahead.

All of the major miners were higher, with BHP Billiton up 3.29%, Fortescue Metals ahead 3.47% and Rio Tinto 2.38% firmer.

The country’s gold mining stocks fared similarly, with Evolution Mining and Newcrest both up, 4.86% and 2.99% respectively.

New Zealand shares were almost flat, edging lower in light summer holiday trading, with the S&P/NZX 50 down 0.02% to 6,875.78.

Aged care provider and retirement village developer Ryman Healthcare led the benchmark lower, losing 2.3%, while energy and telecoms utility Trustpower was the best performer, finishing 3.3% firmer.

It was a mixed picture for the down under dollars, with the Aussie last 0.04% weaker against the greenback at AUD 1.3922, while the Kiwi strengthened 0.34% to NZD 1.4463 per $1.