Asia report: Markets mostly higher in light Wednesday trading

Markets in Asia finished mostly higher on Wednesday amid light trading, as investors began to turn their attention stateside to the likelihood of a Fed rate rise in March.

Japan’s Nikkei 225 finished up 1.44% at 19,393.54, with exporters in the country receiving a boost from a relatively weaker yen.

It was last 0.84% weaker against the greenback at JPY 113.72 per $1.

The major exporters were higher, with Panasonic up 2.6%, Sony adding 1.47% and Toyota 1.59% firmer.

On the mainland, the Shanghai Composite added 0.15% to 3,246.63, while the smaller, technology-focused Shenzhen Composite was up 0.37% at 2,008.86.

Hong Kong’s Hang Seng Index was up 0.15% at 23,776.49, while traders in South Korea enjoyed a day away from the office.

Markets there were closed for the 1 March public holiday, which commemorates the March 1st Movement against the Japanese occupiers in 1919.

Attention during Asian hours was focussed stateside, as the likelihood of an interest rate hike from the Federal Reserve increased on Tuesday with New York Fed president William Dudley telling CNN the “case for monetary tightening has become more compelling”.

Oil prices were lower during Asian trading, though they began a rebound as Europe took the baton, with Brent crude last up 0.27% at $56.66 per barrel and West Texas Intermediate adding 0.17% to $54.10.

Australia’s S&P/ASX 200 was down 0.13% to 5,704.80, with the benchmark dragged down by the energy subindex, which lost 1.26%.

Fresh data from the Australian Bureau of Statistics showed gross domestic product in the sunburnt country grew 2.5% year-on-year in the fourth quarter, well ahead of expectations for a 1.9% rise as polled by Reuters.

In a release, economists at National Australia Bank suggested the GDP figure’s forward momentum would see the Reserve Bank of Australia take a more back-seat approach in 2017.

“While there is clearly spare capacity in labour and product markets, the RBA aims to balance its inflation and employment objectives against financial stability considerations, particularly given the surge in house prices in key markets in late 2016 amidst already high household debts.”

Across the Tasman Sea, the S&P/NZX 50 was also lower, dropping 0.3% to 7,148.78.

It was led into the red by energy generator and retailer Mercury, which lost 2.9%, while Metro Performance Glass was the winner of the day, adding 4.9%.

The down under dollars were mixed, with the Aussie last 0.04% stronger against the greenback at AUD 1.3055 and the Kiwi weakening 0.94% to NZD 1.4033 per $1.