Asia report: Most markets higher as Japan surges

Markets in Asia finished mostly higher on Wednesday, with Japanese shares posting a sizeable gain against a stronger dollar.

The benchmark Nikkei 225 finished up 2.51% at 19,594.16, while the broader Topix was 2.36% higher.

During the session, the final Nikkei Japan manufacturing Purchasing Managers Index rose to 52.4 for the month of December, which was well ahead of its preliminary reading of 51.9, and the 51.3 posted in November.

A number of the major exporters were up sizably as a result of the weaker yen, with Honda adding 4.57% and Toyota up 3.18%.

Embattled airbag maker Takata surged 17.5%, reaching its daily price ceiling again after reports emerged last week that the company was likely to settle US criminal charges over faulty airbag technology next month.

Toshiba finished down 2.01% in a very choppy session, as it dropped as low at 6.9% during the day after reports that the company could have padded its profits by up to JPY 40bn in the last three years.

It followed news before the new year that the company was looking at booking several billion dollars in charges related to its acquisition of a US nuclear plant developer.

Sharp was riding high, adding 8.52% after it emerged it had plans to co-build a CNY 61bn factory with Hon Hai Precision Industry in China.

The yen was stronger on the dollar after the session closed, and it was last ahead 0.18% at JPY 117.54 per $1.

On the mainland, the Shanghai Composite was up 0.76% at 3,159.81, and the Shenzhen Composite was 1.15% higher at 2,008.79.

Chinese markets were still upbeat on Tuesday’s Caixin manufacturing PMI reading, which was its best since January 2013.

In Seoul, the Kospi was up 0.08% at 2,045.64, while Hong Kong’s Hang Seng Index finished 0.07% lower at 22,134.47.

Gambling stocks were under pressure in the country, with Sands China off 0.45% and Wynn Macau down 1.3%, although Melco International managed a 2.35% gain.

The Chinese offshore casino sector is expected to suffer under new rules confirmed by Beijing on Wednesday, which would require financial institutions to report large and suspicious transactions more thoroughly from July onwards.

In Korea, sentiment was negative after the finance minister told media the economy’s momentum would slow in 2017, and hinted at fiscal policy playing a more central role to growth.

Oil prices were higher, with Brent crude last up 0.4% at $55.69 per barrel and West Texas Intermediate climbing 0.49% to $52.59.

Australia’s S&P/ASX 200 was down, losing 0.03% to 5,731.60, while in New Zealand the S&P/NZX 50 finished its first trading day of the year up 1.4% at 6,974.31.

Both of the down under dollars were stronger on the dollar, with the Aussie last ahead 0.58% at AUD 1.3771 and the Kiwi 0.37% stronger at NZD 1.4404 per $1.