Asia report: Markets open 2019 with disappointment

In Japan, markets were closed as traders enjoyed that country’s extended New Year’s holiday, as the yen strengthened 0.54% against the dollar to last trade at JPY 109.15.

On the mainland, the Shanghai Composite slid 1.15% to 2,465.29, and the smaller, technology-heavy Shenzhen Composite was down 0.91% at 1,256.39.

In fresh data, the unofficial Caixin/Markit Manufacturing Purchasing Managers’ Index came in at 49.7 for December, down from 50.2 in November.

A reading below 50 signals a contraction in the sector, with December being the Caixin’s first contraction since May 2017.

The data confirmed the contraction indicated by Beijing’s official data earlier in the week, and was a miss for forecasts, with a Reuters poll having expectations for a reading of 50.1.

South Korea’s Kospi was off 1.52% at 2,010.00, while the Hang Seng Index in Hong Kong dropped 2.77% to settle at 25,130.35.

The technology sector beat the wider market in Seoul, however, with Samsung Electronics managing to rise 0.13% and chip manufacturer SK Hynix advancing 0.17%.

Oil prices were lower, with Brent crude last down 0.79% at $53.38 per barrel and West Texas Intermediate falling 0.73% to $45.08.

In the Antipodes, Australia’s S&P/ASX 200 was down 1.57% at 5,557.80, dragged lower by the hefty financials subindex, which was in the red by 2.01%.

Of the major banks, Australia and New Zealand Banking Group was down 2.45%, Commonwealth Bank of Australia lost 1.96%, National Australia Bank fell 1.83%, and Westpac Banking Corporation was 2.24% lower.

New Zealand’s markets were closed for the second day of that country’s New Year holiday.

Both of the down under dollars were weaker on the greenback, with the Aussie last off 0.69% at AUD 1.4277, and the Kiwi retreating 0.46% to NZD 1.4955.