Asia report: Markets mostly higher as Japan sentiment lifts

Markets in Asia finished mostly higher on Thursday, with shares in Japan advancing after reports that the government was planning significant stimulus were made in local media.

The country’s benchmark Nikkei 225 added 0.77% to 16,810.22, with a relatively weaker yen helping to push stocks higher.

It was last trading 1.09% stronger at JPY 105.72 per $1, however, having strengthened sharply following the market close.

Kyodo News reported that the Japanese government was preparing a stimulus package of at least JPY 20trn (£142bn) to give the domestic economy a boost away from deflation and the possible risks of Brexit.

The package was previously thought to be worth no more than JPY 10trn, according to the news agency.

“Most economists would still stress that genuine reform still needs to be addressed to really put Japan on the right path,” warned IG chief market strategist Chris Weston.

On the corporate front, shares of McDonald’s Holdings in Japan finished down 1.14%, completely reversing a near 9% gain in earlier trading, after it was reported that the fast food firm would collaborate on the Pokemon Go mobile game “soon”.

The runaway game should have been launched in Pokemon’s native Japan on Wednesday, but the launch was delayed by the game’s maker Niantic after internal communications with McDonald’s were leaked.

Shares in Nintendo closed up 0.85% on Thursday after taking a 13% fall on Wednesday - the ailing video games company’s stock has risen more than 100% in the weeks since Pokemon Go was launched.

On the mainland, the Shanghai Composite Index added 0.37% to 3,039.18, while the Shenzhen Composite was up 0.11% at 2,038.18.

South Korea’s Kospi slipped behind, closing down 0.16% at 2,012,22, while Hong Kong’s Hang Seng Index finished 0.54% a 22,000.49.

Shares of IMAX China in Hong Kong finished up 5.57% after the company posted earning results.

The giant movie screen maker reported first-half revenue rising 25.51% year-on-year for Greater China.

Oil prices were lower during Asian trading, with Brent crude last down 0.04% at $47.15 per barrel and West Texas Intermediate losing 0.02% to $45.74.

In Australia, the S&P/ASX 200 closed up 0.43% at 5,512.40, with most subindexes rallying, although the materials sector closed down once again, losing 0.54%.

Mining form South32 - a 2015 spin-off from BHP Billiton - said during the session that it was looking at achieving its 2017 unit cost guidance, after a series of restructuring operations as a number of its mines.

The company also posted full-year production numbers in line with its forecast, with alumina production up 3% to 5,296 kt, while aluminium fell 4%, energy coal fell 8% and manganese alloy plummeting 46%.

Shares in South32 finished down 1.35%, while in the rest of the sector BHP Billiton was flat, Fortescue Metals was up 1% and Rio Tinto added 1.02%.

New Zealand shares rose to another fresh record high, with the S&P/NZX 50 adding 0.6% to 7,214.05.

Steel & Tube led the index higher, up 4.5%, although the metal products processor is still down 9.8% in the year-to-date.

The down under dollars were mixed, with the Aussie last 0.38% stronger against the greenback at AUD 1.3323 per $1, while the Kiwi retreated 0.4% to NZD 1.4289.