Asia report: Markets mixed, SenseTime jumps 7pc on delayed debut

Markets were mixed in Asia on Thursday, as stocks struggled for direction in the globally quiet period between the Christmas and New Year holidays.

In Japan, the Nikkei 225 was down 0.4% at 28,791.71, as the yen weakened 0.15% against the dollar to last trade at JPY 115.12.

Technology giant SoftBank Group managed rose 1.46%, while among the benchmark’s other major components, robotics specialist Fanuc was down 0.41% and Uniqlo owner Fast Retailing slipped 0.55%.

The broader Topix index lost 0.33% by the end of trading in Tokyo, settling at 1,992.33.

On the mainland, the Shanghai Composite gained 0.62% to 3,619.19, and the smaller, technology-heavy Shenzhen Composite was 0.91% firmer at 2,517.16.

South Korea’s Kospi slipped 0.52% to 2,977.65, while the Hang Seng Index in Hong Kong eked out gains of 0.11% to 23,112.01.

China-based artificial intelligence specialist SenseTime Group ended its debut day 7.3% higher in the special administrative region, having opened 4% above its initial public offering price.

That enthusiasm for the company came despite it being caught in ongoing geopolitical tension between Beijing and Washington, which has seen technology companies in both countries come under various sanctions and trading restrictions in recent months.

SenseTime, which was up as much as 13% from its debut price during the day, had delayed its Hong Kong IPO earlier in December after it, along with a number of other Chinese technology plays, was placed on an investment blacklist by federal officials in the United States.

“SenseTime Group, an artificial intelligence company in China, is unlucky to have come sandwiched between the power struggle between the United States and China,” said AvaTrade chief market analyst Naeem Aslam.

“The company was left with no option but to postpone its IPO in Hong Kong after being placed on the United States' blacklist.

"However, the company has finally debuted in the Hong Kong market and has gained 11% from its issue price.”

Seoul’s blue-chip technology stocks were a mixed picture, with Samsung Electronics falling 0.63%, while SK Hynix jumped 3.15%.

The lack of direction in the region came off the back of another stellar session on Wall Street overnight, where the Dow Jones Industrial Average booked its 70th record high close of 2021.

Investors globally were continuing to weigh the rapid spread of the ‘Omicron’ Covid-19 variant, with the World Health Organization warning on Wednesday that new variants “fully resistant to current vaccines or past infection” were always possible.

Countering that downbeat tone, however, was data out of both the UK and South Africa which suggested that the variant was indeed having a more mild impact than previous versions of the coronavirus, and was rapidly outpacing the ‘Delta’ variant.

Pundits have suggested that if Omicron is more mild and less deadly than Delta, and it becomes the dominant strain, the economic and social impacts could be far less serious than initially feared.

Oil prices were lower as the region went to bed, with Brent crude last down 0.71% at $78.67 per barrel, and West Texas Intermediate losing 0.75% to $75.99.

In Australia, the S&P/ASX 200 was just 0.05% above the waterline, rising 3.6 points to 7,513.40, while across the Tasman Sea, New Zealand’s S&P/NZX 50 advanced 0.78% to 13,040.94.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.24% at AUD 1.3763, and the Kiwi advancing 0.1% to last change hands at NZD 1.4630.