Asia report: Most markets rise as investors shrug off economic concerns

Most markets in Asia bounced higher on Tuesday, following a session of heavy losses on Monday, as investors appeared to shrug off weakness on Wall Street overnight.

In Japan, the Nikkei 225 surged 2.15% to 21,428.39, as the yen weakened 0.38% against the dollar to last trade at JPY 110.39.

The broader Topix index also saw healthy gains, rising 12.57% in Tokyo to settle at 1,617.94.

Automation specialist Fanuc managed to rise 1.7% on the benchmark index, while video gaming giant Nintendo rocketed 4.76% amid reports that the company will launch two new models of its popular Switch portable gaming device.

On the mainland, the Shanghai Composite was down 1.51% at 2,997.10, and the smaller, technology-heavy Shenzhen Composite slid 1.28% to 1,639.94.

South Korea’s Kospi was 0.18% higher at 2,148.80, while the Hang Seng Index in Hong Kong added 0.15% to 28,566.91.

Technology behemoth Samsung Electronics was 0.55% lower on Seoul, after the firm warned on its first-quarter earnings amid weakness in its memory and display operations.

Concerns around the state of the global economy remained at the forefront of investor minds, even amid the generally positive moves in Asia, with AMP Capital head of investment strategy Shane Oliver saying that markets were due a correction, or at least a pullback.

“US and global recession still looks to be a fair way off and we continue to see this being a reasonably good year for shares,” Oliver noted.

Oil prices were higher as the region went to bed, with Brent crude last up 0.9% at $67.82 per barrel, and West Texas Intermediate advancing 1.43% to $59.67.

In Australia, the S&P/ASX 200 eked out gains of 0.07% to close at 6,130.60, although retail conglomerate Wesfarmers slipped 3.51% as it confirmed it was interested in buying troubled rare earths mining firm Lynas.

Lynas shares have been dragged through the mud in recent months as it struggled with authorities over environmental approval for its chemicals facility in Malaysia.

Its shares returned from a one-day trading halt on Tuesday, and surged 35.05%.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 returned to its record-breaking trend, rising 0.6% to a new record high close of 9,574.82.

The country’s energy sector was the big winner of the day, with electricity generator and retailer Genesis finishing up 2.3% after touching a new intraday record, while regulated electricity distribution company Vector was 1.7% firmer.

It was a mixed picture for the down under dollars, with the Aussie last 0.16% stronger on the greenback at AUD 1.4037, while the Kiwi weakened 0.07% against the same currency to recently trade at NZD 1.4488.