Asia report: Markets mostly higher as China congress ends

Markets in Asia finished mostly higher on Tuesday, following the lead of Wall Street overnight, with the Tokyo benchmark notching up a 16th straight session of gains.

In Japan, the Nikkei 225 was up 0.5% at 21,805.17, as the yen weakened 0.34% against the dollar to last trade at JPY 113.82.

The index had already broken its previous 14-day winning streak on Monday - a record set in the 1960s.

On the corporate front, both of the country’s major airlines finished higher, with All-Nippon Airways up 0.05% and Japan Airlines ahead 0.34%.

It came after Thai Airways International announced it had selected ANA as its only flight-sharing partner in the country, ending its existing deal with JAL.

On the mainland, the Shanghai Composite was ahead 0.22% at 3,388.25, and the smaller, technology-centric Shenzhen Composite fell 0.12% to 2,009.02.

The Communist Party’s 19th Congress drew to a close on Tuesday, with market watchers of the People’s Republic now turning their attention to the expected unveiling of a reshuffled leadership on Wednesday.

Lawmakers had approved a revision to the Chinese constitution during the final day of the mega-meeting in Beijing on Tuesday, which now referred to President Xi Jinping by name.

It makes Xi only the second leader of the People’s Republic to be referred to in such a manner, after Chairman Mao Zedong.

South Korea’s Kospi was up 0.02% at 2,490.49, while the Hang Seng Index in Hong Kong fell 0.53% to 28,154.97.

Blue chip technology stocks were softer in Seoul, with LG Electronics off 3.91%, Samsung Electronics down 0.48% and SK Hynix 3.42% softer.

There was also attention drawn stateside during the session, as President Donald Trump said he was coming “very, very close” to making a decision as to who would next take the chair at the Federal Reserve.

He had earlier acknowledged that markets were expecting him to select either Stanford economist John Taylor or Fed Governor Jerome Powell, in a television interview.

“The appointment of Powell, who is regarded as relatively dovish on rates and in favour of reduced regulation, could be seen as a positive for stock markets and bearish for the dollar,” noted CMC Markets chief market analyst Ric Spooner.

“Taylor, on the other hand, may lead to a boost in the dollar and some nervousness in stock markets.”

Oil prices were relatively stable during Asian trading, with Brent crude last up 0.66% at $57.75 per barrel and West Texas Intermediate adding 0.69% to $52.26.

In Australia, the S&P/ASX 200 finished 0.06% firmer at 5,897.61, with falls in the hefty financials and energy subindices offset by solid gains for gold miners.

Alacer Gold was up 4% and Kingsgate was ahead 4.71% by end-of-play in Sydney.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 eked out gains of 0.01% to 8,130.10, with dairy product and infant formula exporter A2 Milk the best performer, rising 3.6% to a fresh record price.

Both of the down under dollars were weaker, with the Aussie last off 0.34% at AUD 1.2853 and the Kiwi retreating 0.68% to NZD 1.4454 against the greenback.