Asia report: Most markets higher as China services sector expands further

Markets in Asia finished mostly higher on Thursday, as investors digested fresh data from China showing the country’s services sector growing further.

In Japan, the Nikkei 225 was up 0.03% at 26,809.37, as the yen strengthened 0.11% against the dollar to last trade at JPY 104.31.

Of the major components on the benchmark index, robotics specialist Fanuc was up 0.08%, Uniqlo owner Fast Retailing added 0.55%, and technology giant SoftBank Group was 1.74% firmer.

The broader Topix index added 0.07% by the end of trading in Tokyo, closing at 1,775.25.

On the mainland, the Shanghai Composite slipped 0.21% to 3,442.14, and the smaller, technology-centric Shenzhen Composite eked out gains of 0.01% to 2,290.33.

The unofficial Caixin/Markit services purchasing managers’ index (PMI) came in at 57.8 for November, rising from 56.8 in October.

It remained above the 50-point mark that separates expansion from contraction, and showed a hastening of the growth in the sector over the prior month.

Earlier in the week, Beijing’s official non-manufacturing PMI came in at 56.4 for November, rising from 56.2 in the prior month, and making for the ninth consecutive month of expansion.

South Korea’s Kospi was 0.76% higher at 2,692.22, while the Hang Seng Index in Hong Kong added 0.74% to 26,728.50.

Both of the blue-chip technology stocks were higher in Seoul, with Samsung Electronics up 0.29% and SK Hynix adding 2.29%.

Sentiment was relatively rosy at the start of the Asian day, after US markets posted new record highs overnight, on reports that lawmakers there were considering a new $908bn coronavirus stimulus deal.

“While this may seem like Groundhog Day for a lot of people, and we’ve certainly been here a number of times before since July, there is now increasing evidence that the US economy is starting to slow as we head into year end, against a backdrop of the deadliest day for US coronavirus deaths,” said CMC Markets chief market analyst Michael Hewson.

“This rise in fatalities, along with a weaker-than-expected ADP payrolls report, coming as it has on the back of two successive weeks of increasing jobless claims numbers might be starting to make some less partisan US lawmakers a little bit nervous, which in itself could provide momentum for some form of deal by year end.”

Oil prices were lower as the region went to bed, with Brent crude last down 0.54% at $47.99 per barrel, and West Texas Intermediate losing 0.57% to $45.02.

In Australia, the S&P/ASX 200 was ahead 0.38% at 6,615.30, as fresh data showed an AUD 7.46bn surplus on its seasonally-adjusted balance of goods and services.

That was higher than the AUD 5.8bn surplus expected by economists polled by Reuters.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 lost 0.63% to 12,648.91, as equipment devices manufacturer Fisher & Paykel Healthcare slid 3.31%.

Both of the down under dollars were marginally stronger on the greenback, with the Aussie last ahead 0.03% at AUD 1.3480, and the Kiwi advancing 0.02% to NZD 1.4146.