Asia report: Nikkei hits 11-month high as markets strengthen

Markets in Asia rose on Thursday, with Japan’s benchmark reaching its highest level since January, following on from a bumper session in New York overnight.

The Nikkei 225 appeared to ignore a stronger yen, adding 1.45% to finish at 18.765.47.

Against the greenback, the yen was last 0.25% stronger at JPY 113.49 per $1.

Japan’s economic growth reading for the third quarter was slashed in a revision, down to 1.3%, compared to the preliminary reading of 2.2%.

That was well off the Reuters-polled forecast for a 2.4% uptick.

Electronics maker Sony saw its shares rise 1.94% after it confirmed 11 new smartphone games for the Japanese domestic market in 2017, and indicated companion hardware would be part of it.

SoftBank shares were also still on the rise, pushing 5.48% higher after they leapt on Wednesday, following a meeting between its CEO and US President-elect Donald Trump.

The telecoms and technology conglomerate pledged to invest $50bn in the US and create up to 50,000 jobs during the meeting.

On the mainland, the Shanghai Composite Index was down 0.2% at 3,215.72, while the Shenzhen Composite Index lost 0.62% to 2,077.37.

Dollar-denominated imports into China in November grew by 6.7% year-on-year, according to fresh data from Beijing, while exports in dollars were up 0.1%.

It was the fastest annualised growth for imports in more than three years.

Analysts were well off the mark, with those polled by Reuters picking a 5% drop in exports and a 6.2% decline in imports.

South Korea’s Kospi finished 1.97% higher at 2,031.07, while Hong Kong’s Hang Seng Index added 0.27% to 22,861.84.

Hong Kong-listed shares in HSBC were on the comedown from a 6% spike on Wednesday, losing 0.61% during Thursday’s session.

The surge dame after an upgrade to ‘overweight’ from Morgan Stanley, with the report citing improving revenue outlook as a Federal Reserve rate hike looked increasingly likely.

It’s widely understood that a rate hike stateside would be beneficial to most of the banking sector in Hong Kong, and a move in December was last read as 92.7% probable according to CME Group’s 30-day Fed Fund futures.

Oil prices were up during Asian trading, turning around from softness seen in the US overnight.

Concerns arose stateside over whether the OPEC and Russia-backed output cuts would actually eventuate, alongside downbeat crude inventory data domestically.

Brent crude was last up 0.68% at $53.36 per barrel, and West Texas Intermediate was 0.6% firmer at $50.07.

Australia’s S&P/ASX 200 managed a 1.2% jump to 5,543.60, with the hefty financials subindex adding 1.69% and materials 1.48% higher.

The country’s trade balance data for October was released during the day, showing a deficit of AUD 1.51bn - significantly wider than the AUD 800m forecast.

In New Zealand, the benchmark S&P/NZX 50 was up 0.4% at 6,916.01 at the close, led higher by local insurance giant Tower, which was up 5.2%.

The company’s stock had risen 13% since 29 November, when it announced it was separating its liabilities and receivables from the 2011 Christchurch earthquakes into a ‘bad bank’ structure, kept at arm’s length from the main accounts.

It also said it would “aggressively pursue” NZD 101m in receivables from the Earthquake Commission - the government provider of mandatory disaster insurance - and reinsurer Peak Re.

Both of the down under dollars were stronger on the greenback, with the Aussie last 0.13% ahead at AUD 1.3348 and the Kiwi strengthening 0.55% at NZD 1.3880 per $1.