Asia report: Most markets higher as Pyongyang tests another missile
Markets in Asia finished mostly higher on Wednesday, as traders ignored yet another ballistic missile test from North Korea, and kept their attention on the upcoming meeting between US President Donald Trump and his Chinese counterpart Xi Jinping.
Japan’s Nikkei 225 finished up 0.27% at 18,861.27, as concern continued that Toshiba could miss its quarterly reporting deadline for a third time, having already delayed it twice.
The beleaguered technology form apparently approached creditors cap-in-hand earlier in the week, making a fresh appeal for a new loan in exchange for a chunk of its valuable memory chip unit.
Toshiba was in the process of spinning off the chip unit, in a bid to stem the losses from its failing US nuclear development acquisition Westinghouse.
Westinghouse had declared bankruptcy in the US last week, in hopes it would help keep a lid on the company’s cash outflows.
Banks were under the pressure across the region, with Japanese plays Mitsubishi UFJ and Mizuho Financial both down 0.95%.
The yen retained its stranglehold on the JPY 110 level against the greenback, and was last 0.14% weaker at JPY 110.89 per $1.
Markets on the mainland returned after the two-day Ching Ming Festival, with the Shanghai Composite adding 1.48% to 3,270.20, while the Shenzhen Composite was up 1.85%.
Bank stocks were mixed in China, with Bank of China down 0.54% while China Construction Bank added 1.01%.
In South Korea, the Kospi was almost flat, losing 0.01% to 2,160.85, as concerns continued that private consumption was falling too far in the country.
Bank of Korea chief Lee Ju-yeol explained that more policy was needed to boost consumption, which had taken a hit alongside confidence after the cash-for-influence corruption scandal surrounding ousted and impeached President Park Geun-hye.
Hong Kong’s Hang Seng Index improved 0.57% to 24,400.80.
A medium-range ballistic missile was launched from an onshore facility in the north of the Korean peninsula on Wednesday, according to both the Yonhap news agency in South Korea and the US military.
The launch came ahead of the meeting between Trump and Xi, which was likely to contain much talk about North Korea if the US President’s tweets are anything to go by.
A senior official from the White House reportedly said the meeting would be the first part of a “results-oriented” relationship, with North Korea being seen as a test by Trump.
Oil prices were higher during Asian trading, with Brent crude last uo 0.92% at $54.67 per barrel and West Texas Intermediate 0.97% ahad at $51.53.
In Australia, the S&P/ASX 200 was 0.34% higher at 5,876.20, with the large energy and materials subindexes underpinning the strength, adding 1.52% and 2.19% respectively.
Three of the region’s big four banks ended in the red, with the exception of Commonwealth Bank of Australia.
New Zealand’s S&P/NZX 50 was 0.3% firmer at 7,244.54, led higher by subscription broadcaster Sky - no relation of the London-listed namesake - which added 3.5%.
The company had been a poor showing on the Wellington bourse in recent months, after New Zealand’s Commerce Commission rejected a merger between it and Vodafone’s New Zealand operations.
It was a mixed picture for the down under dollars, with the Aussie last 0.1% stronger against the greenback at AUD 1.3207, while the Kiwi weakened 0.02% to NZD 1.4344 per $1.