Asia report: Most markets higher as investors sift through China data

Markets in Asia were mostly higher on Monday, following a strong finish from Wall Street on Friday and as investors sifted through fresh inflation data from China.

In Japan, the Nikkei 225 was ahead 0.47% at 21,255.56, as the yen strengthened 0.08% against the dollar to last trade at JPY 111.73.

On the corporate front in Tokyo, Softbank was up 1.44% after the further reports that US mobile carrier Sprint, which it controls, was preparing to announce a merger with German-controlled T-Mobile.

The Nikkei said over the weekend that Softbank had “reached a broad agreement” over such a deal.

Kobe Steel was up 2.73%, recovering after trading near five-year lows earlier in the session.

The company was dealing with a product data faking scandal, with its chief executive confirming on Friday that around 500 customers had received affected products.

On the mainland, the Shanghai Composite was off 0.35% at 3,378.80, and the smaller, technology-centric Shenzhen Composite fell 1.52% to 2,005.95.

Fresh inflation data out of China kept investors busy for much of the session, with the country’s consumer price index up 1.6% year-on-year, satiating expectations.

The country’s consumer price index was up 6.9% in the same period, which was well ahead of the 6.3% predicted by a Reuters-polled forecast.

South Korea’s Kospi was ahead 0.26% at 2,480.05, while the Hang Seng Index in Hong Kong was up 0.76% at 28,692.80.

Cosmetics retailers and steel firms were on the front foot in Seoul, with Amorepacific ahead 5.17%, Hyundai Steel rising 2.39% and Posco 5.85% firmer.

Blue-chip technology stocks were mixed, with LG Electronics up 0.9% and SK Hynix down 2.21%.

Samsung Electronics was flat after its announcement on Friday that it was expecting a record profit in its third quarter, thanks to its recent flagship smartphone releases and rising memory chip prices.

Oil prices were higher during Asian trading, with Brent crude last up 1.7% at $58.16 per barrel and West Texas Intermediate adding 1.38% to $52.17.

In Australia, the S&P/ASX 200 finished ahead 0.56% at 5,846.76, led higher by the materials subindex, which added 1.55%.

The major miners were ahead, with BHP rising 2.24%, Fortescue Metals up 1.02% and Rio Tinto 3.43% firmer.

Across the Tasman Sea, the S&P/NZX 50 was ahead 0.02% at 8,090.73, as the country still grappled with drawn-out election uncertainty.

September’s election delivered a hung parliament - a normal circumstance under its electoral system - although the power to form a government now rested with the populist New Zealand First party and its controversial leader Winston Peters.

Peters had missed his self-imposed deadline of 12 October to declare which party he would support in forming a government, though he did say he would announce his decision this week.

The down under dollars were mixed, with the Aussie last 0.21% weaker against the greenback at AUD 1.2704, while the Kiwi strengthened 0.18% to NZD 1.3901.