Asia report: Stocks mixed as HSBC drags on Hang Seng

Stock markets in the Asia-Pacific region closed mixed on Tuesday, with Hong Kong’s bourse lower at the end of another volatile session.

In Japan, the Nikkei 225 was up 1.02% at 27,250.28, as the yen strengthened 0.01% on the dollar to last trade at JPY 148.89.

Robotics specialist Fanuc was up 0.03%, Uniqlo owner Fast Retailing added 0.31%, and tech investing giant SoftBank Group jumped 3.77%.

The broader Topix index was 1.06% firmer by the end of trading in Tokyo, settling at 1,907.14.

On the mainland, the Shanghai Composite was down 0.04% at 2,976.28, and the technology-centric Shenzhen Component was 0.51% weaker at 10,639.82.

South Korea’s Kospi was off 0.05% at 2,235.07, while the Hang Seng Index in Hong Kong was 0.1% lower at 15,165.59.

Anglo-Asian banking giant HSBC tumbled 5.11% in the special administrative region after it recorded a 42% fall in pre-tax profit year-on-year, to $3.15bn.

The bank put the fall partially down to the $2.4bn impact from the sale of its French retail banking operations.

“Slowing but steady progress is being made in numbers which are probably more robust than they first appear, especially when set against the current raft of challenges,” said Richard Hunter, head of markets at Interactive Investor.

“The figures are markedly skewed by two large provisions which entirely change the quarterly result.”

Hunter noted that pending the sale of its French banking operations, HSBC set aside a provision of $2.4bn, while due to wider economic uncertainty there was a further $1.1bn earmarked for potential bad debts, bringing the cumulative figure to $2.2bn for the year.

“The latter provisions compare with releases of $700m and $1.4bn last year, so that the material swing has fed straight through to the headline numbers.”

Seoul’s blue-chip technology stocks were on the front foot, with Samsung Electronics up 0.35% and SK Hynix rising 1.85%.

Oil prices were lower as the region went to bed, with Brent crude futures last down 1.65% on ICE at $91.72 per barrel, and the NYMEX quote for West Texas Intermediate losing 1.64% to $83.19.

In Australia, the S&P/ASX 200 added 0.28% to 6,798.60, while across the Tasman Sea, New Zealand’s S&P/NZX 50 added 1.11% to 10,902.31.

Both of the down under dollars were weaker against the greenback, with the Aussie last off 0.04% at AUD 1.5848, and the Kiwi retreating 0.24% to NZD 1.7604.

Reporting by Josh White at Sharecast.com.