Asia report: Markets recover to end week in style

Markets in Asia were in positive territory as traders closed their last deals for the week, even as fresh data from China confirmed that the country’s manufacturing activity was on the down swing.

USD/JPY

¥152.1300

14:36 05/11/24

0.01%

¥0.02

In Japan, the Nikkei 225 was up 1.02% at 21,602.69, as the yen weakened 0.45% against the dollar to last trade at JPY 111.89.

The broader Topix index was 0.5% higher in Tokyo, closing the day at 1,615.72.

Technology conglomerate SoftBank Group managed to keep its head above the waterline, with its shares ending 1.41% firmer.

On the mainland, the Shanghai Composite gained 1.8% to 2,994.00, and the smaller, technology-heavy Shenzhen Composite was 1.2% firmer at 1,564.84.

It came after the Shanghai benchmark put in its best monthly performance in nearly four years in February, adding 13.8%.

Fresh data out of China was not so rosy, however, with the unofficial Caixin/Markit manufacturing purchasing managers’ index reading 49.9 for February, indicating another month of contraction.

A reading of above 50 signals expansion for the sector, and a reading below that line means contraction.

It also confirmed the contraction reading from Beijing’s official manufacturing PMI on Thursday, which was 49.2 for February.

South Korean markets were closed for a public holiday, after falling sharply on Thursday, while the Hang Seng Index in Hong Kong was 0.63% higher at 28,812.27.

Shares in Seoul had ended in the red on Thursday, after a denuclearisation summit between US president Donald Trump and North Korea leader Kim Jong-un in Vietnam ended early with no agreements being reached.

Oil prices were lower as the weekend kicked off in Asia, with Brent crude last down 0.49% at $65.99 per barrel, and West Texas Intermediate falling 0.39% to $57.00.

In Australia, the S&P/ASX 200 managed gains of 0.38% to 6,192.70, as a majority of subindices finished the session on the positive side of the ledger.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 was ahead 0.3% at 9,351.68, led higher by medical device manufacturer Fisher & Paykel Healthcare, which added 2.5% and reached its highest close in more than four months.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.09% at AUD 1.4083, and the Kiwi advancing 0.2% to NZD 1.4661.