Asia report: Most markets rise amid series of earnings

Most markets in Asia finished in the green on Thursday, as investors digested a number of earnings reports and fresh economic data out of South Korea, while keeping an eye on international developments.

In Japan, the Nikkei 225 was up 0.55% at 22,750.60, as the yen strengthened 0.15% against the dollar to last trade at JPY 108.53.

Of the major components on the benchmark index, automation specialist Fanuc was up 1.19%, while fashion firm Fast Retailing was down 0.84% and technology conglomerate SoftBank Group was 2.94% lower.

The broader Topix index ended the day ahead 0.34% in Tokyo, to close at 1,643.74.

On the mainland, the Shanghai Composite was off 0.02% at 2,940.92, and the smaller, technology-heavy Shenzhen Composite slipped 0.21% to 1,615.96.

South Korea’s Kospi was 0.24% firmer at 2,085.66, while the Hang Seng Index in Hong Kong added 0.87% to 26,797.95.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics down 0.98% and chipmaker SK Hynix rising 2.96%.

SK Hynix had posted its third-quarter earnings during the session, with its operating profit plunging 93% to KRW 473bn thanks to the ongoing slide in memory chip prices.

It was still ahead of expectations for profits of KRW 481bn, as published by Refinitiv.

Carmaker Hyundai Motor was also in the green, rising 0.83% after its net profit rose 59% to KRW 427bn in the third quarter.

That figure, however, was well below the KRW 684bn anticipated by Refinitiv.

In economic news out of South Korea, the company’s economy slowed in the third quarter, with its gross domestic product growing by 0.4% in the third quarter according to preliminary numbers.

South Korea’s economy has been gradually slowing through the year, as it continues to suffer in the ongoing US-China trade war.

The Bank of Korea made the second cut to interest rates in three months earlier in October, in a bid to underpin growth.

Investors were also watching developments further afield during the Asian day, ahead of the last European Central Bank meeting for president Mario Draghi.

Markets were not anticipating any major policy announcements, as the ECB had only taken the wraps off its large stimulus package six weeks earlier.

“The ECB meeting today will be more a homage to Mario than a market event,” said Oanda analyst Craig Erlam.

“A candle on a euro shaped cake will likely be the highlight of Draghi's final meeting as President, with the central bank having unleashed Mario's final bazooka a couple of months ago.

“The slowdown in Europe remains a major concern but that will be Lagarde's problem, assuming the measures announced previously are as ineffective as many fear.”

Brexit was also on the agenda, as reports emerged that Downing Street was preparing to push for a general election should the European Union grant an extension to the Brexit deadline until the end of January.

The EU was still deciding whether an extension would be granted as Asian markets closed.

Oil prices were lower as the region went to bed, with Brent crude last down 0.15% at $61.08 per barrel, and West Texas Intermediate off 0.14% to $55.89.

In Australia, the S&P/ASX 200 was ahead 0.31% at 6,693.60, with the energy subindex well into the green.

Santos was up 2.28% and Woodside Petroleum was 2.36% stronger by the end of trading in Sydney.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was down 0.2% at 10,831.52, led lower by broadband infrastructure operator Chorus, which lost 2.4%.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.16% at AUD 1.4615, and the Kiwi retreating 0.33% to NZD 1.5619.