Asia report: Markets mixed, Aussie economy returns to pre-Covid levels
Markets in Asia finished in a mixed state on Wednesday, with all eyes on the sunburnt country earlier in the session, as data showed the Australian economy recovering to pre-pandemic levels in the first quarter.
In Japan, the Nikkei 225 was up 0.46% at 28,946.14, as the yen weakened 0.26% against the dollar to last trade at JPY 109.79.
The benchmark’s major components were on the back foot, with robotics specialist Fanuc down 1.01%, Uniqlo owner Fast Retailing losing 0.15%, and technology giant SoftBank Group off 0.65%.
Japan’s carmakers were in the green, with Honda Motor up 4.55%, Mazda Motor ahead 4.46%, Mitsubishi Motors ascending 3.23%, Suzuki Motor squeezing ahead 0.41%, and Toyota Motor rising 2.07%.
Those moves came even after reports that some of the country’s auto producers had temporarily halted production in Malaysia, as the south east Asian nation entered a fresh Covid-19 lockdown.
The broader Topix index advanced 0.84% by the end of trading in Tokyo, closing at 1,942.33.
On the mainland, the Shanghai Composite lost 0.76% to close at 3,597.14, and the smaller, technology-centric Shenzhen Composite slid 1.18% to 2,400.90.
South Korea’s Kospi eked out gains of 0.07% to 3,224.23, while the Hang Seng Index in Hong Kong lost 0.58% to 29,297.62.
Seoul’s blue-chip technology stocks were mixed, with Samsung Electronics up 0.25%, while SK Hynix was 1.95% lower.
Oil prices were higher as the region went to bed, with Brent crude last up 1.01% at $70.96 per barrel, and West Texas Intermediate adding 0.86% to $68.30.
In Australia, the S&P/ASX 200 jumped 1.05% to 7,217.80, as investors digested data showing the country’s gross domestic product rose a seasonally-adjusted 1.8% quarter-on-quarter in the three months through March.
That was ahead of the 1.5% expected by analysts polled by Reuters.
“With 1.8% growth in the March quarter 2021, Australian economic activity has recovered to be above pre-pandemic levels and has grown 1.1% through the year,” said Australian Bureau of Statistics head of national accounts Michael Smedes.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 slipped 0.18% to 12,440.05, led lower by medical technology firm Fisher & Paykel Healthcare, which was off 2.7%.
The company is a major explorer to the US healthcare industry, with the prospect of together monetary policy and a stronger New Zealand dollar giving investors the spooks.
Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.36% at AUD 1.2944, and the Kiwi retreating 0.47% to NZD 1.3846.