Asia report: Most markets higher as Trump supports debt ceiling extension

Most markets in Asia were higher on Thursday, with investors influenced by a strong finish in New York overnight after developments on the political front in Washington.

In Japan, the Nikkei 225 was ahead 0.2% at 19,396.52, as the yen strengthened 0.3% on the dollar to JPY 108.89.

Technology conglomerate Toshiba was flat, after it fell more than 1.5% on Wednesday amid a report that there was still no deal in ongoing talks over the sale of the company’s valuable memory chip division.

On the mainland, the Shanghai Composite fell 0.56% to 3,366.43, and the smaller, technology-heavy Shenzhen Composite was off 0.34% to 1,972.74.

South Korea’s Kospi finished up 1.14% at 2,346.19, while the Hang Seng Index in Hong Kong lost 0.33% to 27,522.92.

The market in Seoul was driven by the major exporters, with Hyundai Motor ahead 1.47% and Samsung Electronics 2.38% firmer.

Sentiment was also higher in South Korea after reports the US was postponing plans to terminate a trade deal between the two countries.

The mood was buoyant from early on in the Asian session, after Donald Trump supported a short-term debt ceiling extension overnight which - if passed by Congress - would prevent the US Government defaulting on its debt.

Back in Asia, the Malaysian central bank stood pat on interest rates during the day, keeping them at 3%.

Oil prices were lower during Asian trading, although they turned mixed as Europe took the baton, with Brent crude last up 0.5% at $54.47 and West Texas Intermediate down 0.31% at $49.01.

In Australia, the S&P/ASX 200 was flat at 5,689.88, with solid performances from the telecommunication services and utilities subindexes almost perfectly offset by weakness in the healthcare and gold mining sectors.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.2% at 7,804.26, led higher once again by subscription broadcaster Sky - unrelated to its London-listed namesake - which added 3%.

The company was on the rebound from earlier in the week, when it hit its lowest share price in 18 years amid fears of growing competition from online competitors.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.27% at AUD 1.2465 and the Kiwi advancing 0.08% ato NZD 1.3881.