Asia report: Most markets lower as JGB yields rise

Most markets in Asia finished lower on Thursday, even after a solid showing from Wall Street overnight, with rising oil prices failing to steam up the region’s sentiment.

In Japan, the Nikkei 225 was down 0.44% at 19,994.06, as the yen slid slightly weaker against the greenback, last moving 0.07% behind to JPY 113.34.

The 30-year Japanese government bond saw its yield rise to its highest level since 23 February, at 0.893%, with local commentators citing the rising expectations that the Federal Reserve and the European Central Bank would tighten policy, making their bond yields more attractive than the Japanese ones.

On the mainland, the Shanghai Composite was ahead 0.17% at 3,212.51, while the smaller, tech-heavy Shenzhen Composite added 0.08% to 1,914.59.

South Korea’s Kospi finished down 0.02% at 2,387.81, and the Hang Seng Index in Hong Kong was 0.22% softer at 25,465.22.

Shares of Geely in Hong Kong finished down 0.69%, after its subsidiary Volvo announced that all of its new models from 2019 would be either electric or hybrid.

Oil prices were higher during Asian trading, after falling during US hours overnight, with Brent crude last

In Australia, the S&P/ASX 200 lost 0.08% to close at 5,758.76, with the weighty financials subindex dragging on the benchmark, though there were some bright spots in healthcare.

The country’s trade surplus widened in May, to a surplus of AUD 2.47bn, thanks to a recovery in coal exports.

That compared very favourably to an expected figure of AUD 1.1bn.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was ahead 0.4% at 7,629.61, led higher by manuka honey health foods producer Comvita, which added 2%.

The down under dollars were both weaker on the greenback, with the Aussie last off 0.22% at AUD 1.3181 and the Kiwi retreating 0.36% to NZD 1.3769.