Asia report: Markets mixed on relatively quiet Friday

Markets in Asia finished mixed on Friday, with investors struggling to find direction as they digested tax reform and Fed chair nomination news from the US.

In Japan, markets were closed for the Culture Day holiday, as the yen held steady against the dollar, last moving just 0.01% weaker to JPY 114.09.

On the mainland, the Shanghai Composite fell 0.36% to 3,371.21, and the smaller, technology-heavy Shenzhen Composite was off 0.71% at 1,975.92.

China’s unofficial Caixin services PMI for October was released on Friday, coming in at 51.2, after the official measure was released earlier in the week at 54.3.

South Korea’s Kospi added 0.46% to 2,557.97, while the Hang Seng Index in Hong Kong was ahead 0.3% at 28,603.61.

Carmakers were among the winners in Seoul, with Hyundai Motor up 0.94% and Kia Motors ahead 0.28%, while profit-taking hit some of the big technology plays as Samsung Electronics fell 1.19%.

Focus was once again across the Pacific, as President Donald Trump confirmed Jerome Powell would be the next chairman of the Federal Reserve after Janet Yellen vacates the post at the end of next year.

Powell, whose selection was expected by markets, was seen by many as a candidate of continuity in terms of how the Fed operates.

“[He is] very much allied to the status quo data-driven style at the Fed,” noted National Australia Bank director of economics David de Garis.

Also in the US, House Republicans finally took the wraps off their much-anticipated tax reform bill, confirming the federal corporate tax rate would be slashed to 20% from the current 35%.

Traders in Asia were also given their chance on Friday to react the the Bank of England’s raising of interest rates by 25 basis points on Thursday - the first rise in over a decade.

Oil prices were higher during Asian trading, with Brent crude last up 0.31% at $60.81 per barrel and West Texas Intermediate adding 0.29% to $54.70.

In Australia, the S&P/ASX 200 finished 0.47% firmer at 5,959.88, as the major minors beat the broader index.

Kingsgate was up 6.82%, Newcrest Mining added 2.45% and Rio Tinto finished 1.06% higher.

Across the Tasman Sea, the S&P/NZX 50 lost 0.2% to close at 8,065.12, led lower by infant food and dairy products exporter A2 Milk, which lost 3.2%.

It was a mixed picture for the down under dollars, with the Aussie last 0.64% weaker against the greenback at AUD 1.3047, while the Kiwi strengthened 0.07% to NZD 1.4455.