Asia report: Most markets lose, though Japan shines

Most markets in Asia declined on Thursday, following on from a dire Wednesday in the US, where declines were led by a number of disappointing announcements from the retail sector.

In Japan, the Nikkei 225 opened weaker but reversed its fortunes to close up 0.41% to 16,646.34.

Shares in Toyota lost 1.44%, paring back from earlier losses of as much as 4% as the carmaker announced its full-year earnings at the closing bell.

Net income for the year to 31 March was up 6.4%, but the company warned investors it was looking at a 35.1% drop in net income for the current financial year.

Reports also came in late that Nissan was preparing to take a large chunk of the embattled Mitsubishi Motors, which has been under pressure since admitting it faked mileage test results on cars it manufactured under contract to Nissan.

It’s understood Mitsubishi will issue new shares to Nissan, which would take a 34% stake.

Another under-fire auto industry firm, airbag manufacturer Takata, closed up 12.69% after it emerged that it expects profits in the current financial year.

It had reported a net loss of JPY 13.1bn for the year to March 31, as its global airbag recall continued.

The yen was stronger as the greenback lost ground, letting go of the 109 level it held onto on Wednesday. It did lose out slightly after the close, however, and was last 0.71% weaker at JPY 109.18.

"The lack of key data releases, weaker risk appetite and the lure of profit taking after six consecutive days of gains were the most apparent drivers for a softer dollar overnight," said , a National Australia Bank currency strategist Rodrigo Catril.

On the mainland, the Shanghai Composite and Shenzhen Composite indexes were both flat, at 2,836.73 and 1,790 respectively.

Before markets opened, the People’s Bank set the yuan’s loose peg at CNY 6.4959 to the dollar, against Wednesday’s fix of CNY 6.5209. Renminbi is permitted to trade 2% above or below the loose peg onshore.

In Korea, the Kospi was down 0.13% at 1,977.49, while in Hong Kong the Hang Seng lost 0.7% to finish at 19,915.46.

Oil prices were ahead overnight, with crude inventories in the US falling 3.4 million barrels last week against a forecast for an increase.

Prices remained broadly flat during Asian trading, and started to gain again as Europe came online. Brent crude was last up 0.81% at $47.99 per barrel, while West Texas Intermediate added 0.96% to $46.68.

Down under, the S&P/ASX 200 lost 0.24% to close at 5,359.30, led by the weighty financials subindex which lost 0.88%.

The big four regional banks were mixed - Australia and New Zealand Banking Group and Westpac lost out, while Commonwealth Bank and National Australia Bank both saw gains.

Sydney’s financial sector was on the edge after the Australian Financial Review reported that the country’s regulators are to make a statement of claim against Westpac on Friday.

The Australian Securities and Investments Commission previously accused Westpac of manipulating the market in setting the bank bill swap reference rate between 2010 and 2010, though Westpac has denied the claims.

In retail, department store chain Myer closed up 6.67% after it revealed sales for the 13 weeks to 23 April were up 2.1% to AUD 675.5m, with year-to-date sales up 1.9% to AUD 2.47bn.

Across the Tasman Sea, New Zealand shares also fell with the S&P/NZX 50 losing 0.3% to 6,923.17.

Dual-traded Westpac was also a big loser in Wellington off the back of the ASIC rumours, as well as going ex-dividend. The bank is one of the major institutional and retail operations in New Zealand as well as Australia.

In the trans-Tasman currencies, the Kiwi shifted closer to the greenback and was last trading 0.11% stronger at NZD 1.4651, while the Aussie lost out and was last 0.49% weaker at AUD 1.3625.