Asia report: Softer sentiment carried into Wednesday session

Softer sentiment continued in Asian markets on Wednesday, with most markets closing lower as energy stocks dropped on weaker oil prices.

In Japan, the Nikkei 225 was down 1.57% at 22,028.32, as the yen strengthened 0.63% on the dollar to last trade at JPY 112.74.

Energy plays were sharply lower, with Inpex down 2.65% and Japan Petroleum Exploration falling 4.23% in Tokyo.

Fresh economic growth data showed an annualised 1.4% year-on-year boost to the Japanese economy, ahead of the 1.3% forecast by a Reuters poll, while GDP was ahead 0.3% in the quarter compared to the prior three months.

On the mainland, the Shanghai Composite lost 0.79% to 3,402.54, and the smaller, technology-heavy Shenzhen Composite fell 1% to 2,005.61.

South Korea’s Kospi was off 0.33% at 2,518.25, while the Hang Seng Index in Hong Kong slid 1.03% to 28,851.69.

Blue chip technology firms and carmakers were the big movers in Seoul, finishing mixed, with Hyundai Motor ahead 0.62% while Samsung Electronics sank 1.04%.

Oil prices were lower during Asian trading, with Brent crude last off 1.35% at $61.38 and West Texas Intermediate falling 1.25% to $55.01 per barrel.

In Australia, the S&P/ASX 200 settled 0.58% lower at 5,934.23, led lower by the energy subindex.

Beach Energy was down 3.62% and Santos fell 2.23% by end-of-play in Sydney.

“Shell's exit from the Woodside register proved to be one of the leading catalysts for a bout of profit taking on the Australian stock market,” noted CMC Markets’ Ric Spooner, referring to Shell’s sale of its stake in Woodside on Tuesday.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 dropped back below the 8,000 mark, losing 0.1% to close at 7,999.94.

It was led lower by Metro Performance Glass, which lost 4.4%, and energy generator and retailer Genesis, which fell 3.5%.

The down under dollars were mixed, with the Aussie last 0.45% weaker against the greenback at AUD 1.3162, while the Kiwi strengthened 0.49% to NZD 1.4473.