Asia report: Markets lower ad Koreans head to polls

Japan’s Nikkei 225 was down 0.26% at 19,843.00, with the yen weaker against the greenback.

It was last 0.42% softer at JPY 113.74 per $1.

Struggling technology conglomerate Toshiba was 4.52% higher after it issued a rebuttal to recent claims from Western Digital that it had breached a joint contract between the two firms as it attempted to sell its memory chip division.

Toshiba had been peddling its chip arm for the last few months, hoping to find a buyer for the valuable unit as it faced a potential cash crisis.

On the mainland, the Shanghai Composite was 0.06% higher at 3,080.53, while the smaller Shenzhen Composite was up 0.66% at 1,847.64.

Hong Kong’s Hang Seng Index added 1.27% to 24,889.03, while markets in South Korea were closed as voting in the presidential elections took place.

South Koreans were heading to the polls to choose their new leader, after the previous president Park Geun-hye was impeached and ousted amid a cash-for-influence corruption scandal.

The frontrunner before polls opened was the Liberal Democratic Party’s Moon Jae-in, with the most recent suggesting he had the support of 38% of voters.

A total of 13 candidates were standing.

In Hong Kong, authorities extended the suspension in the trading of China Huishan Dairy Holding shares, which were initially put on hold after plunging 85% in March.

Oil prices were higher during Asian trading, as hopes increased that fresh output cuts from both OPEC and non-OPEC producers could be extended to 2018.

Like Monday, however, they soon slipped as Europe took the trading baton, with Brent crude last down 0.06% at $49.31 per barrel and West Texas Intermediate off 0.07% at $46.40.

Australia’s S&P/ASX 200 was down 0.52% at 5,839.90, led lower by the weighty financials subindex, which lost 2.4%.

The big four regional banks were on the back foot, amid local reports that a bank tax could be a part of the new federal budget that was due to be released after the close.

Australia and New Zealand Banking Group was down 2.64%, Commonwealth Bank of Australia lost 3.85% and Westpac ended 3.52% softer.

“The market is likely to be nervous about this prospect until they get details of what might be involved and what capacity of banks might have to pass this cost onto customers,” noted CMC Markets chief market analyst Ric Spooner.

During the session, analysts at Citi retained a ‘sell’ rating on Westpac Banking Corporation, after it reported positive half-year results on Monday.

Across the Tasman Sea, the S&P/NZX 50 was down 0.2% at 7,412.12, led lower by manuka honey producer and exporter Comvita, which lost 2.6%.

The company - one of the most prominent sellers of the popular health supplement, which is only produced in New Zealand - had seen its stock slide in recent days, after the myrtle rust disease was discovered in the country’s Northland province.

Over the weekend, the Ministry for Primary Industries suggested the disease - which could decimate the manuka crop - was no longer limited to a contained area.

The down under dollars were both weaker, with the Aussie last retreating 0.54% at AUD 1.3610 against the greenback and the Kiwi off 0.19% at NZD 1.4503 per $1.