Asia report: Markets mixed on weak Japan data

Markets in Asia finished mixed on Friday, with a tsunami of earnings and economic data for investors to sift through.

Japan’s Nikkei 225 added 0.63% to 17,446.41, with a weaker yen driving the domestic markets even though Tokyo pushed out a raft of weak economic data during the session.

The yen was last 0.02% stronger against the greenback at JPY 105.27 per $1.

Energy stocks were higher after a rise in prices in US trading overnight, with Inpex adding 0.84% and Japan Petroleum rising 1.37%.

Fresh official data showed consumer price inflation in the country was down 0.5% year-on-year, which marked the seventh month in a row of falling prices.

Household spending in Japan also fell in September, by 2.1%.

There was a silver lining amid the gloomy data, however, with the jobless rate for September falling to 3%, from 3.1% in August.

On the mainland, the Shanghai Composite reversed early gains to finish down 0.23% at 3,105.08, while the Shenzhen Composite finished 0.78% lower at 2,052.02.

In South Korea, the Kospi was down 0.2% at 2,019.98, while Hong Kong's Hang Seng Index lost 0.77% to settle at 22,954.81.

Singapore’s United Overseas Bank was down 2.16%, after it posted a 7.87% fall in third-quarter profit year-on-year.

The bank placed the blame on an increase in bad debt allowances from the ailing oil and gas sector.

CEO Wee Ec Cheong warned the bank “expects subdued global economic growth and volatile market conditions in the months ahead.”

Oil prices rose overnight, after OPEC’s Gulf members reassured the markets of their commitment to Russia to cut output by 4%.

The prices then bobbed above and below the waterline in Asian trading, however, with Brent crude last down 0.14% at $50.40 per barrel and West Texas Intermediate losing 0.28% to $49.58.

Australia’s S&P/ASX 200 finished down 0.22% at 5,283.80, with the hefty financials subindex weighing the benchmark down, as it lost 0.58%.

The REITs sector also fell 1.09%, while the energy and materials sectors both gained, by 1.66% and 1.42% respectively.

“[Australia faces] concerns about the Fed and the U.S. election that seem to be weighing on most share markets,” noted AMP Capital chief economist Shane Oliver.

Investment bank Macquarie Group saw its shares rise 1.69% during the session, after it published half-year profits of AUD 1.05bn, against expectations for AUD 999m.

Australia and New Zealand Banking Group was also at the top of the business pages, after it revealed AUD 360m in one-time charges for the second half.

That sent ANZ shared 1.71% lower in Sydney trading.

On the energy front, Oil Search added 2.72%, Santos was up 1.14% and Woodside Petroleum stocks were 1.36% firmer on the back of the OPEC news.

The Australian Bureau of Statistics did push out one piece of important data during the day, saying producer prices rose 0.3% quarter-on-quarter in the three months to 30 September.

New Zealand’s S&P/NZX 50 fell 0.2% to 6,928.64, led lower by online retailer Trade Me, which was off 3.4%.

Trade Me - the primary e-commerce outlet in a market largely ignored by the likes of Amazon and eBay - has seen its stock fall 17% since reaching a record high at the start of September.

Wellington-traded shares in ANZ were down too after the announcement of the one-off charge - they had lost 2% by market close.

The down under dollars were mixed, with the Kiwi last 0.26% stronger against the greenback at NZD 1.4006, but the Aussie retreating 0.05% to AUD 1.3184.