Asia report: Markets mixes on data, Kiwi dollar crashes

In Japan, the Nikkei 225 was ahead 0.4% at 21,448.52 - rising for the 13th session in a row - as the yen strengthened 0.35% against the dollar to last trade at JPY 112.55.

Data out of Tokyo showed import and export figures coming in just short of market expectations.

The country’s exports were ahead 14.1% year-on-year in September, not quite reaching the 14.9% expected by economists polled by Reuters, while imports were further off, reading 12% against a 15% forecast.

On the mainland, the Shanghai Composite was down 0.35% at 3,370.10, and the smaller, technology-heavy Shenzhen Composite fell 0.82% to 1,983.72.

China’s economy grew 6.8% year-on-year in the third quarter, according to fresh GDP figures, which satiated analyst expectations.

It was slightly lower than the 6.9% growth reported for the second quarter.

The other data releases from the People’s Republic were mixed, with industrial production ahead 6.6% year-on-year in September, above the 6.2% expected in a Reuters-polled forecast.

Retail sales were also above expectations, rising 10.3% year-on-year in September, compared to the 10.2% expected.

It was fixed asset investment that disappointed, however.

“With the GDP coming in on consensus, whatever bullish sentiment the markets were positioned for an upside surprise after Zhou Xiaochuan's comments … that the economy could grow 7% in the second half of the year should get priced out quickly,” noted OANDA head of Asia Pacific trading Stephen Innes.

People’s Bank of China governor Zhou had made the comments on Monday, before warning on Thursday that Beijing would do its best to deflect the risks arising from unbounded optimism in a bid to stop asset prices from collapsing.

South Korea’s Kospi was off 0.4% at 2,473.06, while the Hang Seng Index in Hong Kong dropped 1.92% to 28,159.09.

Carmakers were on the front foot in Seoul, while blue-chip technology plays were in the red.

Hyundai Motor was ahead 0.66% and Samsung Electronics lost 3.25%, with SK Hynix 2.35% softer.

In Hong Kong, property and gambling stocks were weaker.

Smartphone and mobile network equipment maker ZTE tumbled 11.36% after reporting preliminary results which clearly disappointed traders.

Oil prices were lower in late Asian trading, with Brent crude last down 1.24% at $57.44 per barrel and West Texas Intermediate off 1.42% at $51.31.

In Australia, the S&P/ASX 200 added 0.1% to close at 5,896.13, with losses for the major miners offset by gains in the information technology sector and the hefty financials subindex, which was up 0.49%.

Employment in the sunburnt country was up 19,800 in fresh figures released on Thursday, which was ahead of an expected improvement of 15,000.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was up 0.1% at 8,124.04, led higher by manuka honey exporter Comvita, which was up 3.4%.

The company raised its earnings guidance for 2018, citing a recovery in the so-called ‘grey channel’ sales to China, as well as an improvement in sales to North America.

New Zealand’s political future was firmed up after Wellington closed, as the populist New Zealand First party - led by the controversial Winston Peters - announced it would be throwing its support behind a Labour-led left wing government.

The party had held the balance of power after the country’s general election on 23 September, in which the incumbent right-wing National party had won a large plurality of seats but in doing so found itself without enough of its traditional support partners to form a majority.

Jacinda Ardern would now be Prime Minister of New Zealand, just three months after taking the helm of the Labour party, with New Zealand First and the Green Party as its partners.

The down under dollars were mixed, with the Aussie last ahead 0.24% against the greenback at AUD 1.2715, while the Kiwi plunged 1.67% to NZD 1.4213 in the wake of that country’s electoral news.

Winston Peters - who is expected to take the job of deputy Prime Minister - has previously indicated he wanted a weaker New Zealand dollar in a bid to help exporters.