Asia report: Tech stocks in focus in mixed day for region

Stocks finished in a mixed state in Asia on Friday, following a volatile session on Wall Street overnight, with Hong Kong’s main board leading the losses.

In Japan, the Nikkei 225 was up 2.09% at 26,717.34, as the yen weakened 0.18% against the greenback to last trade at JPY 115.58.

It was a positive day for the benchmark’s major components, with automation specialist Fanuc up 1.16%, fashion firm Fast Retailing rising 3.42%, and technology conglomerate SoftBank Group 2.2% firmer.

SoftBank’s moves came after the investment giant updated the market on its management plans, with chief operating officer Marcelo Claure to leave his post as the company’s second-in-charge after nine years.

Claure, who was also responsible for running SoftBank’s embattled office space investment WeWork after the departure of its founder Adam Neumann, would be succeeded by Michael Combes as chief executive officer of SoftBank Group International.

The broader Topix index was ahead 1.87% by the end of trading in Tokyo, closing at 1,876.89.

On the mainland, the Shanghai Composite was off 0.97% at 3,361.44, and the smaller, technology-heavy Shenzhen Composite closed flat at 2,262.37.

South Korea’s Kospi was up 1.87% at 2,663.34, while the Hang Seng Index in Hong Kong lost 1.08% to 23,550.08.

Technology plays were in the red in the special administrative region, with JD.com off 2.84% and Xiaomi Corporation losing 1.33%.

Seoul’s blue-chip technology stocks, meanwhile, were comfortably above the waterline, with Samsung Electronics rising 2.81% and SK Hynix surging 6.17%.

The moves in Asia came on the back of a turbulent session stateside overnight, where the Dow Jones Industrial Average and the S&P 500 gave up their earlier gains to close weaker.

That was despite the US economy expanding at a faster-than-expected cadence in the last quarter of 2021, with US GDP growth coming in at 6.9% year-on-year, even amid the December surge in Omicron infections.

“In terms of the economy as a whole, and prior to the full impact of the variant, US GDP grew at its fastest pace since 1984,” said Interactive Investor head of markets Richard Hunter.

“Even though the momentum is set to waver coming into this year, the strength of the economy may give the Federal Reserve some leeway as it begins the interest rate rising cycle.

“Higher rates are likely to crimp economic growth, and at this pace the economy could withstand the pressure as the Fed sets its mind squarely on inflation.”

Oil prices were higher as the region entered the weekend, with Brent crude last up 0.35% at $89.65 per barrel, and West Texas Intermediate rising 0.25% at $86.83.

In Australia, the S&P/ASX 200 jumped 2.19% to 6,988.01, while across the Tasman Sea, New Zealand’s S&P/NZX 50 closed down 1.64% at 11,852.15.

The down under dollars were both weaker against the greenback, with the Aussie last off 0.89% at AUD 1.4344, and the Kiwi retreating 0.66% to NZD 1.5292.