Asia report: Markets mostly higher, Krafton disappoints on debut
Stock markets in Asia-Pacific were mostly higher by the end of Tuesday, with Seoul’s bourse being the notable exception, as video games developer Krafton plunged on its debut.
In Japan, the Nikkei 225 was up 0.24% at 27,888.15 as investors returned after a long weekend, with the yen strengthening 0.21% against the dollar to last trade at JPY 110.52.
Robotics specialist Fanuc was down 0.66%, while among the benchmark’s other major components, Uniqlo owner Fast Retailing rose 0.97%, and technology giant SoftBank Group was 0.9% firmer.
The broader Topix index was ahead 0.36% by the end of trading in Tokyo, closing at 1,936.28.
On the mainland, the Shanghai Composite jumped 1.01% to 3,529.93, and the smaller, technology-centric Shenzhen Composite was 0.85% higher at 2,483.79.
South Korea’s Kospi was 0.53% weaker, settline at 3,243.19, while the Hang Seng Index in Hong Kong rose 1.23% to 26,605.62.
Korean video games maker Krafton had a disappointing debut on Tuesday, opening 9.9% below its offering price, and plunging as much as 20% during the session.
The company, backed by Chinese technology giant Tencent and known for the mega-hit free-to-play game PlayerUnknown’s Battlegrounds, managed to claw back some of its losses, ending the session down 8.84%.
Seoul’s blue-chip technology plays were also on the back foot, with Samsung Electronics down 1.6% and SK Hynix losing 3.02%.
Companies tied to the China Evergrande property development company were in focus in Hong Kong, meanwhile, with Evergrande Property Services up 20.5% and China Evergrande New Energy Vehicle Group jumping 8.02%.
Those moves came after a report from Reuters that China Evergrande was in talks to sell a chunk of both companies.
“Yesterday’s China factory gate numbers for July showed another increase, rising back to 9% after dipping to 8.8% in June,” said CMC Markets chief market analyst Michael Hewson of the mood in the region.
“Some of that gain was as a consequence of higher crude oil and other raw material prices, however there is evidence that prices are now starting to level off and slide back, if recent declines in various key benchmark commodity indices are any indication.
“Asia markets have had a quiet session, as rising virus concerns temper enthusiasm.”
Oil prices were higher as the region went to bed, with Brent crude last up 1.03% at $69.75 per barrel, and West Texas Intermediate ahead 1.38% at $67.40.
In Australia, the S&P/ASX 200 managed a rise of 0.32% to 7,562.60, while across the Tasman Sea, New Zealand’s S&P/NZX 50 was 0.5% firmer at 12,764.23.
The down under dollars were a mixed picture against the greenback, with the Aussie last trading flat at AUD 1.3641, while the Kiwi weakened 0.1% to NZD 1.4316.