Asia report: Most markets higher as China data delights

Most markets in Asia were higher on Friday, with investors sifting through fresh manufacturing data from China and digesting some flat data out of the US overnight.

In Japan, the Nikkei 225 was up 0.23% at 19,691.47, as the yen weakened 0.17% against the dollar to JPY 110.17.

Toshiba was once again in the spotlight, after the technology conglomerate missed its self-set 31 August deadline to reach an agreement over the sale of its valuable memory chip business.

It’s understood Toshiba remained in talked with three different parties over a deal, and its shares finished 1.63% higher.

The company had been trying to offload its memory chip business for a number of months in a bid to shore up a cash crisis, caused primarily by the failure of its US nuclear acquisition Westinghouse Electric.

On the mainland, the Shanghai Composite was ahead 0.19% at 3,367.30, and the smaller, technology-centric Shenzhen Composite finished 0.59% firmer at 1,956.35.

The unofficial Caixin China manufacturing PMI for August was released during the session, recording a six month high of 51.6.

That was ahead of market expectations, with a Reuters-polled forecast picking a reading of 50.9, which would have been a reduction from the 51.1 reading in July.

Caixin’s numbers reflected the official figures released on Thursday, which were also above expectations at 51.7, although the official services PMI recorded a decline to 53.4 from 54.5.

South Korea’s Kospi fell 0.23% to 2,357.69, while the Hang Seng Index in Hong Kong was off 0.06% at 27,953.16.

The Seoul benchmark finished August in the red, after making eight months in a row of gains.

Korean retail giant Lotte was planning to borrow $300m to keep Lotte Mart operations in China afloat, as well as to pay off other debt, it was reported late on Thursday.

The company was struggling in China with a large number of Lotte Mart locations shuttered for ‘code violations’ - which many analysts believe are linked to the political rift between Seoul and Beijing after the former allowed the deployment of a US anti-missile system.

Lotte Shopping shares were down 5.25%, while Lotte Himart was up 0.73% and competitor Shinsegae lost 2.85%.

On the data front in South Korea, manufacturing activity contracted in August, although at a slower rate, with the Nikkei/Markit PMI reading of 49.9 a shift closer to the 50-mark.

Exports rose 17.4% year-on-year in August, and inflation was at its highest level in five years.

Gambling stocks in Hong Kong were on a winning streak, with Galaxy Entertainment, SJM Holdings and Wynn Macau all recording sizeable gains during the session.

Fresh data showed casino revenue in Macau surged 20% in August, even though the region was hit by two separate typhoons.

Much attention was on the US on Friday, after Treasury Secretary Steve Mnuchin claimed a “very detailed” tax plan had been prepared by the Trump administration, although not a lot of that detail was released.

It had been introduced to Congress, and would be made public at the end of September, Mnuchin told CNBC.

Inflation and consumer spending data from the US also gave Asia traders plenty to think about, with consumer spending growing 0.3% in July - less than the 0.4% forecast by Reuters.

The country’s personal consumption expenditures price index was 1.4% higher year-on-year, which was slightly off the 1.5% improvement recorded in June.

On the energy front, oil prices were down somewhat during Asian trading, as it emerged the largest oil refinery in the US could be offline for up to a fortnight as a result of ex-Hurricane Harvey.

Brent crude was last down 0.51% to $52.59 per barrel, and West Texas Intermediate lost 0.85% to $46.83.

In Australia, the S&P/ASX 200 was 0.18% firmer at 5,724.59, led by the healthcare and gold subindices.

Across the Tasman Sea in New Zealand, the S&P/NZX 50 was 0.06% higher at 7,821.98, with health technology firm Fisher & Paykel Healthcare one of the big risers, rising 2.2% to a record high.

Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.2% at AUD 1.2608 and the Kiwi retreating 0.28% to NZD 1.3973.