Asia report: Markets mixed on quiet day for local news

Markets in Asia finished mixed on Monday, as investors took their cues from a softer Wall Street on Friday on the back of concerns over tax reform progress in the US.

In Japan, the Nikkei 225 was down 0.6% at 22,261.76, as the yen weakened 0.1% against the dollar, last trading at JPY 112.21.

Energy plays were mixed in Tokyo, with Inpex down 0.08% and Japan Petroleum up 1.17%.

Embattled technology conglomerate Toshiba announced it was planning a JPY 600bn capital raise through the sale of new shares, as part of its need to raise JPY 750bn by the end of March.

That would solve the hole left in its balance sheet by the failure of its US nuclear acquisition, Westinghouse Electric, and stop the firm being delisted from the Tokyo Stock Exchange.

Shares in Toshiba were down 5.82%.

On the mainland, the Shanghai Composite added 0.3% to close at 3,393.02, and the smaller, technology-heavy Shenzhen Composite was ahead 0.9% to 1,971.93.

South Korea’s Kospi was down 0.25% at 2,527.67, while the Hang Seng Index in Hong Kong added 0.21% to 29,260.31.

Market watchers were still focussed on developments - or the lack thereof - in US tax reform plans long-trumpeted by President Trump.

Republicans in the House of Representatives and the Senate have presented different plans for how the reform should be implemented, with little indication of how the differences in opinion should be resolved.

Oil prices were also in focus, amid reported of tightening tension between Iran and Saudi Arabia after Lebanese Prime Minister Saad al-Hariri resigned, and the controversial conflict in Yemen continued to escalate.

A meeting of OPEC members was also due to take place next week in Vienna, where member states were due to decide whether to put a cap on output past March next year.

Brent crude was last down 1.16% at $62.00 per barrel, while West Texas Intermediate fell 0.6% to $56.37.

In Australia, the S&P/ASX 200 was 0.19% softer at 5,945.67, led lower by the hefty financials subindex which lost 0.41%, while the energy sector managed to add 0.11%.

Santos was ahead 0.6% and Woodside Petroleum gained 0.55%, while Beach Energy was off 0.47% and Oil Search slipped 0.97%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.3% at 8,089.80, led higher by outdoor apparel and equipment brand Kathmandu, which was 5.3% higher ahead of its annual general meeting.

The down under dollars were mixed, with the Aussie last 0.13% weaker against the greenback at AUD 1.3236, while the Kiwi strengthened 0.16% to NZD 1.4644.