Asia report: Most markets higher, Australia retail sales surge
Most markets in Asia finished in the green on Wednesday, as investors watched a falling oil price and digested a major boost in retail revenue in Australia.
In Japan, traders were still enjoying the Golden Week of holidays with bourses there remaining shut, as the yen strengthened 0.23% against the dollar to last trade at JPY 106.32.
On the mainland, the Shanghai Composite was up 0.63% at 2,878.14, and the smaller, technology-heavy Shenzhen Composite rose 1.53% to 1,790.28.
South Korea’s Kospi was ahead 1.76% at 1,928.76, while the Hang Seng Index in Hong Kong gained 1.13% to 24.137.48.
Life insurance giant AIA was among the leading risers in the special administrative region, finishing 2.1% higher.
Both of the blue-chip technology stocks were in the green in Seoul, with Samsung Electronics up 1.44% and chipmaker SK Hynix adding 1.73%.
The Covid-19 coronavirus pandemic was still very much shaping sentiment, with analysts questioning the rosier outlook being painted on Wednesday.
“For now, markets appear to be pricing in the prospect that economic activity can improve from here on in, and while that may well be true, we still don’t know the extent of the economic damage that has been done already,” said CMC Markets analyst Michael Hewson.
“This is important given that some of the damage could well be very difficult to repair and bounce back from, meaning that instead of a ‘V’ or ‘U’ shaped recovery we could well see more of a gradual, and very long ‘U’.”
Oil prices had a roller coaster Asia session, falling during the afternoon before picking back up at the end of the region’s day.
It came after a surge in prices for the thick black stuff on Tuesday, as sentiment was boosted by the gradual reopening of economies around the world, as well as cuts in production.
Brent crude was last up 2.03% at $31.60 per barrel, while West Texas Intermediate grew 3.46% to $25.41.
In Australia, the S&P/ASX 200 was the odd one out in the region, falling 0.42% to close at 5,384.60.
In fresh data out of Canberra, retail sales in the sunburnt country jumped 8.5% year-on-year in March, as consumers stocked up on essentials amid the Covid-19 coronavirus pandemic and its ensuing lockdowns.
That was above expectations for an 8.2% rise, as picked by economists polled by Reuters, but did little to sway investors, with the country’s two major grocers - Woolworths and Coles - both in the red by the close.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.78% firmer by the end of trading, at 10,572.84.
It was led higher by payment technology company Pushpay, which surged 20.9% after reporting a 33% improvement in revenue, as well as a 2021 EBITDA expectation of between $48m and $52m.
The down under dollars were a mixed picture against the greenback, with the Aussie last ahead 0.01% at AUD 1.5543, while the Kiwi retreated 0.1% to NZD 1.6536.