Asia report: Markets mostly lower amid lighter trading

Markets in Asia finished mostly in the red on Wednesday, amid lighter volumes as traders began to close their wallets ahead of Federal Reserve chair Janet Yellen’s testimony before the US Congress.

In Japan, the Nikkei 225 was down 0.48% at 20,098.38, as the yen strengthened against the dollar, last advancing 0.47% to JPY 113.40.

On the economic front, the country’s corporate goods price index improved 2.1% year-on-year in June, according to fresh data from Tokyo, which saw it fall in line with analyst expectations.

Shares in Toshiba were up 1.12% after it emerged the company was now in talks with Western Digital over the sale of Toshiba’s valuable memory chip unit.

Toshiba had been in talks with a state-led consortium over the sale, which was opposed by American memory giant Western Digital as the pair share a manufacturing facility.

Western Digital did win a temporary court order on Tuesday, allowing it access to shared databases and information as a result of the joint venture.

On the mainland, the Shanghai Composite was off 0.16% at 3,198.03, and the smaller, technology-heavy Shenzhen Composite was down 0.11% at 1,889.45.

South Korea’s Kospi finished 0.18% softer at 2,391.77, while the Hang Seng Index in Hong Kong was ahead 0.64% at 26,043.64.

Traders were looking to central banks during the session, with Federal Reserve governor Lael Brainard claiming on Tuesday that the Fed would make moves “soon” on the unwinding of its huge portfolio, as has been well-signalled.

Fed chair Janet Yellen was due to testify before Congress later in the global day, likely speaking on subjects such as the timing of the unwinding, its future interest rate hikes, and jobs market matters.

The Bank of Canada was also on the agenda, as it was due to make an interest rates decision during North American hours.

Some focus was on the ongoing Trump-Russia political allegations stateside, after the President’s son Donald Trump, Jr released a series of emails surrounding his meeting with Russian lawyer Natalia Veselnitskaya last year, in a bid to be “totally transparent”.

In the emails, it emerged Veselnitskaya was claiming to hold information that could be “helpful” to the Trump presidential campaign.

Oil prices were higher during the Asian session, with Brent crude last up 1.57% at $48.28 per barrel and West Texas Intermediate ahead 1.75% at $45.84.

Australia’s S&P/ASX 200 finished down 0.96% at 5,673.83, with the weighty financials subindex and the healthcare sector dragging the benchmark lower.

Over in New Zealand, the S&P/NZX 50 fell 0.6% to 7,586.02, led lower by broadband infrastructure network operator Chorus, which lost 2.6%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.17% at AUD 1.3071 and the Kiwi advancing 0.16% to NZD 1.3818.