Asia report: Most markets manage gains as sentiment improves

Most markets in Asia were higher on Friday, with the exceptions of those in Tokyo and Sydney, as fresh developments in the ongoing trade spat between Beijing and Washington helped to calm nerves, which were stoked by a profit warning from Apple earlier in the week.

In Japan, the Nikkei 225 was down 2.26% at 19,561.96, as the yen weakened 0.43% against the dollar to last trade at JPY 108.14.

The broader Topix was off 1.53% in Tokyo at 1,471.16, with declines seen across most industries.

Uniqlo fashion brand owner Fast Retailing was down 5.45%, and technology conglomerate SoftBank was off 2.89%, as the country’s traders returned from their extended New Year’s holidays.

On the mainland, the Shanghai Composite was ahead 2.05% at 2,514.87, and the smaller, technology-heavy Shenzhen Composite added 2.66% to 1,279.49.

Sentiment in China was boosted after Beijing’s consumer ministry confirmed trade talks with the United States would be held at the vice-ministerial level on 7-8 January.

It also came after the unofficial Caixin/Markit services purchasing managers’ index rose to 53.9 for December - up from 53.8 in November, and its highest level in six months.

It was also in contrast to declines seen in both the official and unofficial manufacturing PMI figures, released several days earlier.

South Korea’s Kospi was up 0.83% at 2,010.25, while the Hang Seng Index in Hong Kong managed gains of 2.24% to 25,626.03.

In Australia, the S&P/ASX 200 slipped 0.25% to settle at 5,619.40, with the hefty financials subindex dropping 0.34%.

Shares in the big four Australasian banks were mixed, with Australia and New Zealand Banking Group down 0.37%, Commonwealth Bank of Australia up 0.07%, National Australia Bank rising 0.21%, and Westpac Banking Corporation slipping 0.04%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.1% at 8,743.76, having spent much of the session in the red.

It was led higher by energy generator and retailer Meridian, which was up 2.3%, while its rival Mercury added 1.7%.

The down under dollars were mixed, with the Aussie last 0.55% stronger on the greenback at AUD 1.4196, while the Kiwi weakened 0.26% to NZD 1.4980.