Asia report: Stocks mixed, SoftBank jumps on Alibaba news

Stocks were mixed at the end of trading in Asia on Friday, with Japan’s benchmark index being lifted on its return from a holiday by one of its biggest technology plays.

In Japan, the Nikkei 225 was up 2.62% at 28,546.98 after being closed for a holiday on Thursday, as the yen weakened 0.29% against the dollar to last trade at JPY 133.40.

Automation specialist Fanuc leapt 5.89%, fashion firm Fast Retailing rose 1.94%, and technology conglomerate SoftBank Group jumped 5.55%.

SoftBank’s gains came on the back of news on Thursday that it would see JPY 4.6trn added to its pre-tax gains through a reduction in its holding of Chinese tech behemoth Alibaba Group.

The broader Topix index was ahead 2.04% by the end of the day in Tokyo, settling at 1,973.18.

Japan’s prime minister Fumio Kishida addressed the rising cost of living on Friday, saying his government would propose ways to deal with rising food and fuel prices.

While inflation in the country is hovering around the Bank of Japan’s 2% target, its economy has largely experienced flat-to-deflationary prices for about three decades, meaning any rising prices could come as a shock.

On the mainland, the Shanghai Composite was down 0.15% at 3,276.89, and the technology-heavy Shenzhen Component was 0.44% weaker at 12,419.39.

South Korea’s Kospi managed gains of 0.16% to 2,527.94, while the Hang Seng Index in Hong Kong added 0.46% to 20,175.62.

Chinese chipmaker SMIC slid 3.61% in the special administrative region, after reporting a 25% fall in second-quarter profit despite a 42% improvement in revenue.

Seoul’s blue-chip technology stocks were mixed, with SK Hynix closing flat and Samsung Electronics adding 0.5%.

The rise for Samsung came after Korean president Yoon Suk-yeol officially pardoned the firm’s embattled vice-chairman, Jay Lee, to help deal with what the Justice Ministry called a “national economic crisis”.

Lee is currently on parole, having served 18 months in prison for bribery charges over his time at the helm of Samsung Electronics.

“I will live up to the country’s expectations and the government’s considerations and revitalisation the economy by sustained investment and job creation for young people,” Lee said in a translated statement reported by CNBC.

Oil prices were higher as the region entered the weekend, with ICE futures for Brent crude last up 0.52% at $100.12 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.24% to $94.57.

“The barrel of US crude rebounded as the International Energy Agency (IEA) warned that the biggest US oil companies’ combined deficit is almost back to the historical lows, and the end of the strategic petroleum release in the US, which should end in less than three months, will make the tight supply much more obvious,” said Swissquote senior analyst Ipek Ozkardeskaya.

“The IEA says that the soaring gas prices boosted the use of oil-power generation, and that the ‘substantial’ gas-to-oil switching is, in return, set to boost crude consumption for the rest of the year, even as demand growth from other parts of the economy slows, due to higher price pressures, and slowing economic activity.

“They added that the extra demand due to high gas prices will increase by two million barrels this year, to push the daily oil demand to around 100 million, and a further 2.1 million in 2023, to push the global oil demand close to 102 million barrels per day.”

Ozkardeskaya said from a technical perspective, oil prices had completed an ‘ABCD’ pattern, which could encourage a bullish breakout, and support a rebound toward the $100 per barrel level in the short-to-medium run.

“The first natural target for the oil bulls stands near the $96 level, which is the 200-DMA.”

In Australia, the S&P/ASX 200 was off 0.54% at 7,032.50, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.25% lower at 11,730.52.

The down under dollars were both stronger on the greenback, with the Aussie last ahead 0.09% at AUD 1.4062, and the Kiwi advancing 0.1% to NZD 1.5524.

Reporting by Josh White at Sharecast.com.