Asia report: Markets mostly lower as commodities fall

Markets in Asia were mostly lower on Friday, with an early fall in commodities prices putting the kibosh on sentiment, as traders kept their wallets shut ahead of the US nonfarm payrolls report.

Japan’s markets were closed for the Children’s Day holiday - the third day of closure in a row as part of the Golden Week break.

The yen shifted stronger against the greenback, and was last ahead 0.1% at JPY 112.35 per $1.

On the mainland, the Shanghai Composite was 0.77% lower at 3,103.36, while the Shenzhen Composite shed 1.24% to 1,872.79.

Hong Kong’s Hang Seng Index was off 0.84% at 24,465.35, while South Korea’s Kospi was also closed for Children’s Day.

Gaming stocks were on the back foot in Hong Kong, with SJM leading the fall, losing 4.45% after reporting its first quarter earnings.

Its EBITDA was 15% below forecast, with gaming revenue down 5% year-on-year.

That was well below the 13% rise in the wider Macau gambling market.

Of its sector peers, Galaxy Entertainment was off 4.59% and Wynn Macau lost 2.41%.

The overnight session in the US saw the recent fall in commodities prices continue, softening global sentiment as Friday broke in Asia.

“Commodities slumped across the board as the market loses faith with the oil supply cuts drawing down inventories,” read a Friday note from Australia and New Zealand Banking Group.

“An apparent financial tightening in China exacerbated the bearishness in the market.”

Oil prices were down seriously, although Brent crude began a small recovery in early European trading, last adding 0.27% to $48.51 per barrel, while West Texas Intermediate was down 0.04% at $45.50.

The losses came after data released on Wednesday showed a 0.93 million fall in US crude stockpiles, which was shorter than the 2.3 million barrel drop anticipated.

That left stocks stateside still very high, at just 7 million barrels short of their record.

In Australia, the S&P/ASX 200 lost 0.68% to 5,863.56, with resources shares in the red dragging the benchmark down.

BHP Billiton was down 2.67%, Fortescue Metals lost 3.02% and Rio Tinto was 2.01% softer.

Oil plays were also down on the sunburnt continuent, with Santos losing 3.02% and Woodside Petroleum off 2.68%.

Those losses were partially offset by Macquarie, which added 3.23% after the institutional bank beat full-year profit expectations.

New Zealand’s S&P/NZX 50 was 0.2% softer at 7,365.50, led lower by manuka honey producer Comvita, which was down 6.5%.

There were concerns for the firm’s outlook, as the myrtle rust plant disease was discovered in the country’s Northland province this week.

Any spread of the disease could be devastating for New Zealand’s manuka honey export industry.

The down under dollars were mixed, with the Aussie last 0.2% weaker against the greenback at AUD 1.3525, and the Kiwi strengthening 0.28% to NZD 1.4516 per $1.