Asia report: Most markets follow US lower

Most Asian markets ended the week downbeat, with losses across the region on Friday following drops in US equities overnight.

The Nikkei 225 was an exception, however, as it marched ahead 1.2% to 17,657.49 on the back of a relatively weaker yen.

Japan’s yen remained fairly steady once again, before weakening sharply after markets closed. It was last off 0.81% against the US dollar at JPY 110.35.

The exporters in Japan were mixed, with Toyota up 0.43%, Nissan up 0.24% and Honda improving 0.51%. Electronics giant Sony lost 2.85%.

Mitsubishi Motors was continuing its downward spiral, losing 12.21% on Friday, after the company’s executives admitted the automaker had cheated on fuel economy tests.

Kyodo News reported Japan transport minister Keiichi Ishii as telling Mitsubishi that it might have to buy back the affected cars.

On the mainland markets finished up after a mixed trading day, with the Shanghai Composite Index gaining 0.23% to 2,959.68 and the smaller Shenzhen Composite up 1.03% at 1,867.56.

In Korea, the Kospi fell 0.33% to 2,015.49, while Hong Kong’s Hang Seng Index was off 0.72% at 21,467.04.

Analysts put at least some of the losses down to profit taking, with IG market strategist Evan Lucas saying the ASX was showing “glaring profits, and possible buyer exhaustion”.

Oil prices were ahead during Asian trading, retracing from a drop in the US overnight over fresh concerns of oversupply. Brent crude was last up 0.63% to $44.81 while West Texas Intermediate rose 0.78% to $43.52 per barrel.

The overnight decline came after intelligence firm Genscape said there was likely a build-up of more than 840,000 barrels in US crude at the Cushing, Oklahoma delivery point in the four days to 19 April.

Down under, the Australian S&P/ASX 200 dipped 0.69% to 5,236.37, led by declines in the energy, materials and financials subindexes.

The Aussie dollar was stronger against the greenback, with OANDA senior foreign exchange trader Stephen Innes saying the reversal in oil prices overnight sent the currency higher.

"The stronger dollar weighed negatively on commodity prices and coupled with lower prices in the oil patch, the Aussie sold off in convincing fashion," he said.

New Zealand shares fell from Thursday’s record high, with the S&P/NZX 50 dropping 0.6% to 6,866.1. Flag carrier Air New Zealand led the index lower, dropping 3.8% after it released its monthly investor update showing short-haul passenger growth as growing less than anticipated.

The Kiwi weakened 0.39% to NZD 1.4524, finishing the week in losses against the greenback.