Asia report: Most markets rise ahead of US inflation report

Most markets in Asia closed above the waterline on Tuesday, with several bourses returning from a long weekend, and investors looked ahead to a key inflation report due out of the US later in the global day.

In Japan, the Nikkei 225 was up 0.25% at 28,614.63, as the yen strengthened 0.41% on the dollar to last trade at JPY 142.26.

Tech investing giant SoftBank Group rose 0.3%, while robotics specialist Fanuc was down 1.06% and Uniqlo owner Fast Retailing slipped 0.11%.

The broader Topix index was 0.32% firmer by the end of trading in Tokyo, settling at 1,986.57.

On the mainland, the Shanghai Composite eked out gains of 0.05% to 3,263.80, and the technology-centric Shenzhen Component rose 0.39% to 11,923.47.

South Korea’s Kospi jumped 2.74% to 2,449.54, while the Hang Seng Index in Hong Kong was the region’s odd one out, slipping 0.18% to close at 19,326.86.

The blue-chip technology stocks surged in Seoul, with Samsung Electronics up 4.5%, and SK Hynix rising 4.87%.

Traders were turning stateside by the end of the session, with the US consumer price index (CPI) data for August set to be released at 1330 BST.

Headline inflation is expected to have slowed to 8% year-on-year, from 8.5% in July, although core inflation excluding energy and food is anticipated to have risen.

“Asian shares rose on Tuesday, tracking the positive overnight cues from Wall Street as investors turned cautiously optimistic over the highly anticipated US inflation report,” said FXTM senior research analyst Lukman Otuniga.

“In Europe, stock futures point to a mixed open along with US markets, despite the recent positive market sentiment.

“Easing oil prices have injected financial markets with a sense of optimism that inflation may slow in the United States, resulting in less aggressive rate hikes from the Federal Reserve.”

Oil prices were higher as the region went to bed, with Brent crude futures last up 0.93% on ICE at $94.87 per barrel, and West Texas Intermediate advancing 0.98% to $88.64 on NYMEX.

In Australia, the S&P/ASX 200 added 0.65% to 7,009.70, with hospital operator Ramsay Health Care tumbling 10.35%.

The company said a consortium led by KKR was “not in a position to improve the terms” of its takeover bid, after Ramsay rejected its offer earlier in the year.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 lost 0.43% to 11,762.15, led lower by property plays as fresh data showed a continued fall in house prices in the country.

Argosy Property was down 1.7%, Goodman Property Trust lost 0.5%, Kiwi Property Group slid 1%, Precinct Properties also edged down 1%, and Property for Industry was 0.2% weaker.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.12% at AUD 1.4499, and the Kiwi advancing 0.1% to last trade at NZD 1.6278.

Reporting by Josh White at Sharecast.com.