Asia report: Markets mixed, NZ dollar rises on central bank comments

Markets in Asia closed in a mixed state on Wednesday, with much focus on the New Zealand dollar, after that country’s central bank maintained its current policy settings.

In Japan, the Nikkei 225 was up 0.31% at 28,642.19, as the yen weakened 0.1% against the dollar to last trade at JPY 108.89.

Technology conglomerate SoftBank Group was down 1.03%, while among the benchmark’s other major components, automation specialist Fanuc was up 1.3% and fashion firm Fast Retailing was 0.53% firmer.

The broader Topix index eked out gains of 0.06% by the end of trading in Tokyo, closing at 1,920.67.

On the mainland, the Shanghai Composite was ahead 0.34% at 3,593.36, and the smaller, technology-heavy Shenzhen Composite slipped 0.06% to 2,380.56.

South Korea’s Kospi was off 0.09% at 3,168.43, while the Hang Seng Index in Hong Kong rose 0.88% to 29,166.01.

Seoul’s blue-chip technology stocks were mixed, with Samsung Electronics down 0.13% and SK Hynix finishing flat.

Oil prices were mixed at the end of the Asian day, with Brent crude last up 0.07% at $68.70 per barrel, while West Texas Intermediate lost 0.2% to $65.94.

In Australia, the S&P/ASX 200 was down 0.32% at 7,092.50, as the hefty financials subindex squeezed out an advance of 0.02%.

The country’s big four banks were mixed, with Australia and New Zealand Banking Group up 0.18% and Westpac Banking Corporation rising 0.27%, while Commonwealth Bank of Australia slipped 0.05% and National Australia Bank lost 0.22%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 managed gains of 0.05% to 12,347.44, after the Reserve Bank announced it would maintain its current stimulus measures until inflation and employment targets are reached.

“The committee noted that medium-term inflation and employment would likely remain below its remit targets in the absence of prolonged monetary stimulus,” the central bank’s Monetary Policy Committee’s minutes read.

“The committee also noted that while the low interest rate environment has supported house prices, other factors such as recent tax changes, the growing supply of housing, and lending restrictions, are providing offsetting pressures.”

It said it agreed to maintain its current stimulatory monetary settings until the committee was confident that consumer price inflation would be sustained near the 2% per annum target midpoint, and that employment was at its “maximum sustainable level”.

“Meeting these requirements will necessitate considerable time and patience.”

In the wake of that announcement, the Kiwi was trading stronger against the greenback, last advancing 1.08% to change hands at NZD 1.3685, while the Aussie was ahead 0.32% at AUD 1.2856.