Asia report: Markets mixed on a Brexit knife edge

Asian markets finished mixed on Thursday, with investors in the region on a knife edge just hours before polls opened in the United Kingdom's referendum on its membership of the European Union.

In Japan, the Nikkei 225 rose 1.07% to close at 16,238.35 while the yen maintained its strength against the greenback.

It weakened as the region went to bed, however, and was last 0.45% behind the dollar at JPY 104.88.

Shares in Sharp Corporation closed up 6.4%, after a report from new controlling shareholder Hon Hai Precision Industry - better known at Foxconn - that it will terminate some of Sharp’s more costly operations.

The Nikkei newspaper also reported that Sharp will begin shipping OLED panels next year.

On the mainland, the Shanghai Composite Index lost 0.46% to 2,982.05, and the Shenzhen Composite was down 0.32% to 1,915.20.

The Korean Kospi finished down 0.29% at 1,986.71, and Hong Kong’s Hang Seng Index was up 0.35% at 20,868.34.

Shares in South Korea’s Hyundai Merchant Marine were ahead 29.96%, after a Dow Jones report that the flagging firm has entered negotiations to join mammoth shipping alliance 2M,

Most market moves appeared subdued, even though there was still uncertainty in the air over the Brexit referendum.

“Markets seem to have almost entirely priced in a 'remain' vote win, meaning that the market moves and volatility around the vote may be far less than many had expected,” said IG market analyst Angus Nicholson.

Oil prices fell overnight after data from the US showed its crude inventory was lower than market expectations.

The US Energy Information Administration reported a stockpile drawdown of 917,000 barrels for the week to 17 June, against expectations for 1.7 million in a Reuters-polled forecast.

Prices were recovering as European traders took over from their Asian counterparts, with Brent crude last ahead 1.13% at $50.45 per barrel and West Texas Intermediate up 1.07% at $49.66.

Australia’s S&P/ASX 200 added 0.19% to 5,280.70, underpinned by a 1.62% rise in the materials subindex.

The major miners saw decent gains, with Fortescue Metals surging 8.28% and Rio Tinto adding 2.74%.

In New Zealand, the S&P/NZX 50 gained 0.6% to 6,821.35, led by Vital Healthcare and retirement village operator Summerset Group.

The down under dollars were both stronger on their American cousin, with the Aussie last 1.07% stronger at AUD 1.3139 per USD and the Kiwi ahead by a round 1% at NZD 1.3819.