Asia report: Markets mostly lower, Kiwi surges on RBNZ governor appointment

Markets in Asia closed mostly lower on Tuesday, although energy plays were higher as oil prices crept up, with the New Zealand dollar gaining further on the greenback after the country’s central bank appointed its next governor.

In Japan, the Nikkei 225 lost 0.32% to 22,866.17, as the yen gained 0.12% against the dollar to last trade at JPY 113.42.

Carmakers and technology firms were mixed, while gains were evident across financial stocks and trading houses.

Energy firms were also on the up on the back of oil prices, with Inpex finishing ahead 3.51%.

On the mainland, the Shanghai Composite was off 1.24% to 3,281.01, and the smaller, technology-heavy Shenzhen Composite lost 0.97% to 1,901.09.

South Korea’s Kospi was down 0.42% to 2,461.00, while the Hang Seng Index in Hong Kong fell 0.59% to 28,793.88.

Losses in energy firms and retailers in Seoul offset gains in blue-chip technology stocks, with Lotte Shopping falling 3.41% while Samsung Electronics was ahead 0.62%.

Reports of a potential takeover offer led to shares in Kumho Tire surging 7.57%, although details on any bids were scarce.

Focus was on the upcoming two-day Federal Reserve meeting, and the interest rates decision due on Wednesday.

Markets were largely expecting a rise in rates, with most market watchers keenly awaiting the FOMC’s views on how the US economy is performing.

Oil prices were higher, with Brent crude last up 1.22% at $65.49 per barrel and West Texas Intermediate adding 0.84% to $58.48.

In Australia, the S&P/ASX 200 added 0.25% to 6,013.20, led higher by energy companies, with that subindex rising 1.26%.

Oil Search added 1.1% and Woodside Petroleum was ahead 1.7% by end-of-play in Sydney.

Australia and New Zealand Banking Group was also on the front foot, rising 1.1% after confirmation it would sell its insurance arm to Zurich Financial Services Australia for AUD 2.85bn.

Shares in shopping centre operator Westfield Group were halted from trade after French company Unibail-Rodamco announced it was to purchase the group for $24.7bn.

Scentre Group, which operates Westfield centres in Australia and New Zealand and was spun out of the wider Westfield Group several years ago, finished 4.07% higher.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 eked out gains of 0.04% to close at 8,280.81.

An announcement late on Monday confirmed that Adrian Orr would be appointed the next governor of the Reserve Bank of New Zealand, giving that country’s currency a boost.

The New Zealand dollar had suffered a tumultuous couple of months, following the formation of a left-leaning coalition government after a September election.

Against the greenback, the Kiwi was last ahead 0.56% at NZD 1.4389, while the Aussie advanced 0.55% to AUD 1.3214.