Asia report: Markets finish firmer as global fears ease

In Japan, the Nikkei 225 was the odd one out among the benchmark indices, slipping 0.02% to 21,505.31, as the yen strengthened 0.01% against the dollar to last trade at JPY 111.34.

The broader Topix index was also on the back foot in Tokyo, losing 0.25% to close at 1,611.69.

On the mainland, the Shanghai Composite rose 0.2% to 3,176.82, and the smaller, technology-heavy Shenzhen Composite was 0.11% higher at 1,757.60.

South Korea’s Kospi was 0.41% firmer at 2,177.18, while the Hang Seng Index in Hong Kong improved 0.21% to 29,624.67.

Sentiment was given a boost overnight, as positive data in the US helped buoy markets there following the release of solid data from China.

US manufacturing activity rebounded from low levels in February to expand in March, while China’s unofficial Caixin/Markit PMI leapt back into expansion mode with a reading of 50.8.

“Better-than-expected US data helped ease fears about the US growth outlook,” noted analysts at ANZ Research, adding that the rebound in China’s manufacturing data was also “rippling” across global markets.

Oil prices were higher as the region went to bed, with Brent crude last up 0.49% at $69.35 per barrel, and West Texas Intermediate rising 0.9% to $62.15.

In Australia, the S&P/ASX 200 advanced 0.41% to settle at 6,242.40, led by gains in the hefty financials and the energy subindices, which were up 0.45% and 0.89% respectively.

The Reserve Bank of Australia sated market expectations, standing pat on the country’s official cash rate of 1.5%.

In his statement, the central bank’s governor Philip Lowe said low interest rates were currently underpinning the economy, with the employment market strong, leading to some improvement in wage growth.

The Reserve Bank expected unemployment to shrink further, with inflation to gradually return to normal levels, Lowe said.

He said the ideal scenario, as far as the central bank is concerned, would be for underlying inflation to reach 2% this year and 2.25% next year.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was 1.1% higher, finishing at yet another record high of 9,958.35, led higher by outdoor clothing and equipment brand Kathmandu, which was 5.2% firmer.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.49% at AUD 1.4130, and the Kiwi retreating 0.58% to NZD 1.4777.