Asia report: Markets mixed as Korea data points to slowdown

Japan’s Nikkei 225 was up 0.76% to a fresh six-month high of 17,365.25, while the broader Topix was up 0.71% to 1,377.32.

The yen was relatively weaker for much of the session, and was last off 0.26% against the greenback at JPY 104.45 per $1.

Major exporters were boosted by the weaker yen, with Mazda Motor up 2.93%, Nissan adding 1.28%, Panasonic rising 0.19% and Toyota 1.43% firmer.

Video gaming giant Nintendo managed to catch a break from its recent share price fall, gaining 2.98%.

The previous two sessions had been brutal for the developer, as investors voiced the disapproval of the upcoming ‘Switch’ console product, which was partially revealed last week.

Kyushu Railway made its debut on the Tokyo bourse, opening 19.23% higher than its offer price of JPY 2,600, before settling at JPY 2,990 per share by market close.

On the mainland, the Shanghai Composite was up 0.12% to 3,132.08, with the Shenzhen Composite rising 0.36% to 2,077.74.

South Korea’s Kospi finished 0.52% lower at 2,037.17, with the Korean won also weakening - it was last behind 0.2% against the greenback at KRW 1,133.35 per $1.

Data from the Bank of Korea showed the country’s GDP grew by a seasonally-adjusted 0.7% quarter-on-quarter in the third quarter, marginally ahead of a Reuters-polled forecast for a 0.6% increase.

On a year-on-year basis, however, GDP was up 2.7%, falling well below the 3.3% improvement in the second quarter.

It was a tumultuous quarter for the Korean economy, with a mass strike among workers at Hyundai Motor, the collapse of Hanjin Shipping and the PR disaster that was Samsung’s fire-prone Galaxy Note 7 smartphone.

“The moderation was broadly expected, which was presaged by the sequential slowdown in industrial production in the first two months of the quarter,” said ANZ Asia economist Eugenia Victorino.

There was still enough headroom for the Bank of Korea to go ahead with another rate cut sometime in the January-March quarter, however, Victorino added.

Hong Kong’s Hang Seng Index, which had pared back earlier declines in late trading, was right back into the red by the close, losing 0.17% to 23,565.11.

Oil prices were higher in Asian afternoon trading, with Brent crude last up 0.33% at $51.63 per barrel and West Texas Intermediate adding 0.55% at $50.80.

Australia’s S&P/ASX 200 climbed 0.63% to 5,442.80, boosted by the financials subindex and positive gains from the ‘big four’ regional banks.

Australia and New Zealand Banking Group shares were up 0.67%, Commonwealth Bank of Australia added 0.75%, National Australia Bank rose 0.62% and Westpac stock was 1.08% higher.

New Zealand’s S&P/NZX 50 rose 0.6% to 7,002.86, with flag carrier Air New Zealand the day’s best performer, adding 3.8%.

The down under dollars were both stronger in late trading, with the Aussie last ahead 0.39% against the greenback at AUD 1.3087, and the Kiwi strengthening 0.2% to NZD 1.3979 per $1.