Asia report: Most markets start week higher

Markets in Asia were mostly higher at close on Monday, as traders brushed off disappointing data released at the weekend in China.

In Japan, the Nikkei 225 closed up 0.33% at 16,466.40, paring back earlier gains of more than 1% by the time markets closed.

Before markets opened, the Bank of Japan released data showing the country's producer price index for April fell 4.2% year-on-year, compared to a Reuters-polled forecast for a 3.7% decline.

The yen remained around the 108 mark against the greenback that it occupied at the end of last week, and was last trading 0.12% weaker at JPY 108.76.

Japanese exporters were mixed, with Nissan up 0.53% and Sony dropping 1.28%.

Traders in Tokyo were starting to look towards the country’s first-quarter gross domestic product numbers due this week - expectations are for an annualised growth rate of 0.2% in the January to March quarter.

“Growth is expected to turn positive after a negative quarter, and given the market’s focus on the timing of the BoJ easing, stronger or weaker growth could have an unusually significant impact on the yen,” said BK Asset Management managing director of foreign exchange strategy Kathy Lien.

On the mainland, the Shanghai Composite Index finished up 0.84% at 2,850.93, while the Shenzhen Composite was ahead 1.72% at 1,815.02.

Data released by the country’s National Bureau of Statistics suggested investment, factory output and retail sales all experienced a slowdown in growth in April.

Factory output pulled back to 6% growth during the month, compared to Reuters-polled forecast for a 6.5% year-on-year rise.

IG market analyst Angus Nicholson said the slower growth “provides further evidence that [China’s] aggressive first-quarter stimulus appears to be levelling off into the second quarter.”

In Korea the Kospi was broadly flat, closing up 0.05% at 1,967.91, while in Hong Kong the Hang Seng Index was up 0.84% at 19,883.95.

Oil prices were ahead during Asian trading, and kept climbing as Europe took over. Brent crude was last ahead by 1.7% at $48.66 per barrel, while West Texas Intermediate added 1.74% at $47.03.

Down under, Australia’s S&P/ASX 200 finished up 0.56% at 5,358.90, with the weighty financials subindex gaining 0.57%.

A number of the country’s mining stocks were under pressure, however, with smaller players Sandfire Resources and South32 closing down 0.18% and 1.48% respectively.

The major miners fared well, with Fortescue up 1.04% and Rio Tinto climbing 1.25%.

Energy equities in the country were down, however, with Santos losing 0.72% and Woodside Petroleum down 0.7%.

Even further down under, the S&P/NZX 50 dropped 0.03% to close at 6,914.13.

Global accounting software firm Xero led the risers, gaining 5.26% after telling the market it has managed to reduce cash burn and doesn’t need any more capital to reach breakeven.

The antipodean currencies both gained on the greenback, with the Kiwi last ahead 0.31% at NZD 1.4722 per dollar, and the Aussie ahead by 0.32% at AUD 1.3713 to one USD.