Asia report: Markets mixed as traders take stock of negative month

Markets in Asia ended in a mixed state on Monday, with bourses in China recording some serious slides.

In Japan, the Nikkei 225 was off 0.16% at 21,129.80, as the yen weakened 0.38% against the dollar to last trade at JPY 112.34.

The broader Topix index was 0.4% softer in Tokyo.

On the mainland, the Shanghai Composite slid 2.18% to 2,542.10, and the smaller, technology-heavy Shenzhen Composite lost 2.02% to 1,264.58.

South Korea’s Kospi was down 1.53% at 1,996.05, while the Hang Seng Index in Hong Kong pushed 0.38% higher at 24,812.04.

The market in the special administrative region was given a boost by HSBC, which reported its third-quarter earnings during the session, with pre-tax profit ahead 28% year-on-year.

Revenue was up 6.32% for the period, with the bank’s Hong Kong shares up 5.04% at the close.

As they looked at the last remaining sessions in October, analysts in the region were looking at the significant global sell-offs seen during the month, and what that would carry through to November.

Mizuho Bank noted that now could be a good time to consider “whether this is … a ‘healthy’ and long overdue correction that is merely - and sensibly - taking account of monetary policy calibrations, and attendant global liquidity conditions, or an alarming descend into potentially unruly bear markets.”

“The jury is still out, and perhaps it is useful to take stock of what's priced in, and drivers of equities at the margin; given the much wider asset market spillover,” they added.

Oil prices fell, with Brent crude last down 0.14% at $77.51 per barrel, and West Texas Intermediate off 0.22% at $67.44.

In Australia, the S&P/ASX 200 added 1.11% to 5,728.20, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.6% at 8,615.54.

The down under dollars were mixed, with the Aussie last 0.04% weaker against the greenback at AUD 1.4110, while the Kiwi strengthened 0.29% to NZD 1.5284.