Asia report: Most markets higher despite overnight dip in sentiment

Most markets in Asia finished higher on Tuesday, even amid continuing concerns that China’s economy was slowing down as a result of its ongoing trade war with the United States.

In Japan, the Nikkei 225 was up 0.96% at 20,555.29, as the yen weakened 0.33% against the dollar to last trade at JPY 108.52.

On the mainland, the Shanghai Composite was 1.36% higher at 2,570.34, and the smaller, technology-heavy Shenzhen Composite improved 1.49% to 1,323.16.

South Korea’s Kospi was ahead 1.58% at 2,097.18, while the Hang Seng Index in Hong Kong surged 2.02% to 26,830.29.

Sentiment in Asia appeared largely positive, despite a poor showing on Wall Street overnight, as American investors held their pocketbooks close at the start of that market’s earnings season.

Concerns around a slowdown in China lingered, after a release of disappointing data from Beijing on Monday.

“Risk is under modest downward pressure after yesterday's disappointing December Chinese export data and confirmation of weak euro area industrial production fuelled concerns that a synchronised global manufacturing down-swing is underway and possibly intensifying,” noted analysts at ANZ Research.

Oil prices were higher as the region went to bed, with Brent crude last up 1.6% to $59.95 per barrel, and West Texas Intermediate adding 1.52% to $51.29.

In Australia, the S&P/ASX 200 rose 0.71% to 5,814.60, with the hefty financials subindex ahead 0.66%.

Both the energy and materials sectors were also in the green in Sydney trading.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 went against the regional trend, slipping 0.04% to 8,964.58.

The down under dollars were in a mixed state but little changed, with the Aussie last 0.06% stronger on the greenback at AUD 1.3888, while the Kiwi retreated 0.01% to NZD 1.4659.