Asia report: Markets mostly higher, Australian retail sales plunge

Most markets in Asia turned in modest gains on Thursday, as investors watched the ongoing reopening of economies amid the Covid-19 pandemic, while new data showed Australians keeping their wallets closed during April.

In Japan, the Nikkei 225 was up 0.36% at 22,695.74, as the yen weakened 0.13% against the dollar to last trade at JPY 109.04.

Automation specialist Fanuc was down 0.13%, while among the benchmark’s other major components, fashion firm Fast Retailing was ahead 0.41% and technology conglomerate SoftBank Group was up 1.05%.

The broader Topix index was ahead 0.3% by the end of trading in Tokyo, settling at 1,603.82.

On the mainland, the Shanghai Composite was down 0.14% at 2,919.25, and the smaller, technology-heavy Shenzhen Composite gained 0.28% to 1,852.54.

South Korea’s Kospi was 0.19% firmer at 2,151.18, while the Hang Seng Index in Hong Kong advanced 0.17% to 24,366.30.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics up 0.18%, while chipmaker SK Hynix fell 1.13%.

Alongside the ongoing easing of coronavirus restrictions in a number of economies, investors were also digesting the latest jobs data out of the United States overnight.

According to ADP, private payrolls in the US fell by 2.76 million in May, which was still a much better figure than the 8.75 million pencilled in by economists polled by Dow Jones.

US president Donald Trump also fanned the flames of geopolitical tensions, announcing that Chinese airlines would be barred from landing in America from 16 June.

The decision, which was made by the US Department of Transportation, is understood to have been a response to Beijing forbidding US air carriers from resuming flights to China amid the Covid crisis.

China's civil aviation regulator subsequently issued a notice allowing US carriers to resume limited services into the country

Oil prices were lower at the end of the Asian day, with Brent crude last down 0.98% at $39.40 per barrel, and West Texas Intermediate falling 1.53% to $36.72.

In Australia, the S&P/ASX 200 managed gains of 0.84% to 5,991.80, as fresh data out of the sunburnt country showed retail sales plummeting 17.7% on a seasonally-adjusted basis in April.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.94% higher at 11,222.80, led higher by oil processor Refining New Zealand, which was up 8.8%.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.39% at AUD 1.4505, and the Kiwi retreating 0.07% to NZD 1.5583.