Asia report: Most markets higher, though Toshiba plunges

Markets in Asia finished mixed on Wednesday, with most investors chasing gains in the US overnight after Federal Reserve chair Janet Yellen made the case for further rate rises stateside.

In Japan, the Nikkei 225 finished 1.03% higher at 19,437.98, with the broader Topix index up 0.95% at 1,553.69.

Technology-focussed conglomerate Toshiba tumbled 8.75% after reports emerged that it was looking at a $6.3bn charge at its failed US nuclear power development division.

It was also looking to sell more of its valuable memory chip division, with loans from banks and insurers apparently standing at $7bn.

Analysts at Nomura had changed their rating on Toshiba to ‘suspended’ from ‘buy’ on Tuesday.

“The company announced for the first time today that it is considering selling a majority stake in the memory business along with other options for injecting capital from outside sources, making it difficult to price in the memory business' potential,” noted Nomura analyst Masaya Yamasaki.

Reports also emerged in New York that Toshiba chairman Shigenori Shiga was resigning from his position, with the former chief of its Westinghouse nuclear division in the US losing his executive role.

Elsewhere on the Japanese corporate front, telecoms giant SoftBank announced it was acquiring asset management firm Fortress Investment Group in a deal worth $3.3bn.

Shares in SoftBank were up 1.58%.

Banks also finished higher, with Mitsubishi UFJ adding 1.71%, Mizuho Financial up 1.15% and SMFG 1.37% firmer.

The yen was weaker against the greenback, last retreating 0.25% to JPY 114.55 per $1.

Markets were lower on the mainland, with the Shanghai Composite finishing down 0.16% at 3,212.72.

In South Korea, the Kospi finished 0.45% higher at 2,083.86, while Hong Kong’s Hang Seng Index was 1.23% firmer at 23,994.87.

Oil prices were lower, with Brent crude last down 0.38% at $55.76 per barrel and West Texas Intermediate down 0.45% at $52.96.

Australia’s S&P/ASX 200 was 0.94% higher at 5,809.07, with the weighty financials subindex up 1.7% by end of play.

All of the big four regional banks finished firmer, with Australia and New Zealand Banking Group up 1.28%, Commonwealth Bank of Australia rising 2.3%, National Australia Bank climbing 2.43% and Westpac adding 1.77%.

Major miner BHP Billiton was also a big riser, adding 1.26%, after reports that striking workers at the Escondida mine in Chile had agreed to restart talks with BHP.

New Zealand’s S&P/NZX 50 finished 0.4% higher at 7,180.02, with subscription broadcaster Sky - no relation to the London-listed namesake - leading the index, adding 3.4%.

The big banks were also firmer on that side of the Tasman Sea, with Westpac up 2.5% in Wellington trading.

Both of the down under dollars were stronger, with the Aussie last ahead 0.22% at AUD 1.3021 against the greenback and the Kiwi strengthening 0.1% to NZD 1.3936 per $1.