Asia report: Markets mixed, Hong Kong pops on Covid easing reports
Equity markets were mixed in Asia on Thursday, with Hong Kong’s benchmark index popping on rumours the city could soon ease some Covid-19 restrictions.
In Japan, the Nikkei 225 was down 0.4% at 27,574.43, as the yen weakened 0.15% against the dollar to last trade at JPY 136.83.
Tech investing giant SoftBank Group was up 2.15%, while robotics specialist Fanuc was down 0.6% and Uniqlo owner Fast Retailing slipped 0.43%.
The broader Topix index was 0.35% weaker by the end of trading in Tokyo, settling at 1,941.50.
Fresh data released earlier showed Japan’s economy shrinking less than expected in the third quarter.
The data showed the country’s gross domestic product contracting by 0.8% year-on-year in the third quarter, below both the preliminary estimate for a 1.2% fall, and the 1.1% economists polled by Reuters had pencilled in.
At the same time, the country reported a deficit of JPY 64.1bn in its unadjusted current account balance, missing estimates for a surplus of JPY 623.4bn by a country mile.
“Governor Kuroda has said that the Bank of Japan will consider an exit strategy from loose monetary policy once inflation is sustained above 2%, and is accompanied by wage increases,” said Duncan Wrigley at Pantheon Macroeconomics.
“We think that the Bank sees the revised GDP data as confirming its assessment that domestic demand is insipid, especially private consumption, due to high imported inflation.
“Inflation should gradually ease over the course of 2023, but the pace of economic recovery will likely be too slow to warrant a change in policy settings.”
On the mainland, the Shanghai Composite slipped 0.07% to 3,197.35, and the technology-centric Shenzhen Component was down 0.25% at 11,389.79.
South Korea’s Kospi was off 0.49% at 2,371.08, while the Hang Seng Index in Hong Kong jumped 3.38% to 19,450.23.
The gains in the special administrative region came after pro-Beijing state-owned newspaper Wen Wei Po reported that city officials were considering easing more pandemic rules.
It said that could include lifting the requirement for masks to be worn outdoors, alongside relaxing the rules around Covid-19 testing on arrival in Hong Kong.
Airlines were in the green on the news, with Air China ascending 5.77%, Cathay Pacific rising 4.04%, China Eastern Airlines ahead 3.75%, and China Southern Airlines adding 5.83%.
Casino operators were also well above the waterline, with Galaxy Entertainment up 5.62%, MGM China jumping 12.77%, Sands China ahead 10%, and Wynn Macau rocketing 22.39%.
The blue-chip technology stocks were mixed in Seoul, with Samsung Electronics up 0.51% while SK Hynix slipped 0.13%.
Oil prices were higher as the region went to bed, with Brent crude futures last up 0.44% on ICE at $77.51 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.6% to $72.44.
In Australia, the S&P/ASX 200 fell 0.75% to 7,175.50, after the country’s trade surplus came in slightly higher than expectations.
Official data showed a surplus of AUD 12.2bn for October, just ahead of the AUD 12.1bn markets had been expecting, according to Reuters polling.
The surplus came on the back of a 0.9% fall in exports, and a 0.7% contraction for imports.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 managed gains of 0.05% to 11,617.14, with Fonterra Shareholders’ Fund units jumping 4.7%.
The rise in the units - which allow investors the opportunity to participate in the performance of the farmer-owned dairy giant Fonterra - came after the cooperative hiked its earnings guidance for the year.
It was a mixed day for the down under dollars against the greenback, with the Aussie last 0.08% stronger at AUD 1.4859, while the Kiwi weakened 0.16% to NZD 1.5762.
Reporting by Josh White for Sharecast.com.