Asia report: Markets mostly higher as oil prices rise

Markets in Asia finished mostly higher on Wednesday, with the so-called ‘THAAD stocks’ in Korea surging as the country’s president began a four-day trip to China and oil prices creeping higher.

In Japan, the Nikkei 225 fell 0.47% to 22,758.07, as the yen strengthened 0.18% against the dollar to last trade at JPY 113.34.

Carmakers and financial stocks were on the front foot, while energy plays fell with Tokyo’s technology firms forming a mixed bag.

Sharp shares finished up 1.59%, while SoftBank was off 0.84% by the time markets closed.

Technology conglomerate Toshiba was up 1.96%, after it finally came to an agreement with American memory giant and business partner Western Digital.

Western Digital had previously protested Toshiba’s decision to sell its memory chip unit to a consortium led by Bain Capital.

The two firms appeared to have kissed and made up, confirming in a joint statement that they would proceed as business partners, going ahead with investments in the Yokkaichi joint venture.

On the mainland, the Shanghai Composite was up 0.7% to 3,303.66, and the smaller, technology-heavy Shenzhen Composite was ahead 0.77% to 1,915.77.

South Korea’s Kospi added 0.79% to 2,480.55, while the Hang Seng Index in Hong Kong surged 1.49% to 29,222.10.

Korean president Moon Jae-in began a four-day trip to China, with ‘THAAD stocks’ rising amid hopes the visit would help to mend frayed relations in the wake of Seoul’s deployment of the THAAD anti-missile defence system.

The ‘THAAD stocks’ are those companies exposed to a retaliatory Beijing, previously seen to be keen to cut off tourism between China and South Korea.

Of those stocks, Amorepacific was up 2.57%, Korean Air Lines added 6.77% and Lotte Shopping finished ahead 1.26%.

Blue-chip technology stocks were lower, although those losses were offset by firmer performances from carmakers and manufacturers.

Samsung Electronics was down 1.5% and SK Hynix lost 1.29%, while Posco was 0.75% higher.

Oil prices were higher, with Brent crude last up 1.49% to $64.30 per barrel, while West Texas Intermediate added 1% to $57.71.

In Australia, the S&P/ASX 200 was up 0.14% at 6,021.80, although the energy sector suffered.

Oil Search was flat and Santos lost 1.18%, while the gold and utilities subindices also fell by end-of-play.

Shopping centre investor Westfield rocketed 13.65% after the company accepted a multi-billion takeover bid from French form Unibail-Rodamco.

Scentre Group, which operates Westfield centres in Australia and New Zealand and was spun out of the main group several years ago, was up 1.61%.

Across the Tasman Sea, the S&P/NZX 50 tacked on 0.05% to close at 8,248.58, led higher by the self-listed market operator NZX, which was up 1.8%.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.08% at AUD 1.3218 and the Kiwi advancing 0.1% to NZD 1.4406.