Asia report: Most markets rise as traders return from holiday

Most markets in Asia finished in positive territory on Thursday, as fresh data showed China’s manufacturing activity remained in expansion in December.

Markets in Japan were closed for a public holiday, as the yen weakened 0.03% against the dollar to last trade at JPY 108.79.

On the mainland, the Shanghai Composite was up 1.15% at 3,085.20, and the smaller, technology-heavy Shenzhen Composite was 1.93% firmer at 1,756.16.

The unofficial Caixin/Markit manufacturing purchasing managers’ index came in at 51.5 for December, signalling the country’s manufacturing sector was still in expansion territory.

That was down from a reading of 51.8 for November, however, and was weaker than expectations for 51.7 according to a poll by Reuters.

The country’s official manufacturing PMI, which was released on Tuesday, was slightly above expectations.

Overnight, the People's Bank of China cut the reserve requirement ratio for the country's lenders by 50 basis points, giving the financial sector a boost.

South Korea’s Kospi lost 1.02% to close at 2,175.17, while the Hang Seng Index in Hong Kong was 1.25% stronger at 28,543.52.

The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics down 1.08% and chipmaker SK Hynix rising 0.64%.

Fresh data out of South Korea showed the country’s exports fell 5.2% year-on-year in December, which was better than expectations for a 6% decline.

Sentiment was relatively positive on Thursday, after US president Donald Trump confirmed earlier in the week that he would sign the so-called ‘phase one’ trade deal with China on 15 January in Washington.

That was backed up by a report from the South China Morning Post that China’s vice-premier and leading trade negotiator Liu He could sign the deal.

Oil prices were higher at the end of the Asian day, with Brent crude last up 0.45% at $66.30 per barrel, and West Texas Intermediate ahead 0.21% at $61.19.

In Australia, the S&P/ASX 200 rose 0.1% to 6,690.60, as markets in New Zealand remained closed for the second of that country’s two-day New Year holiday.

The down under dollars were both weaker on the greenback, with the Aussie last off 0.41% at AUD 1.4309, and the Kiwi retreating 0.5% to NZD 1.4946.