Asia report: Markets reverse losses as Clinton clinches debate

Japan’s Nikkei 225 added 0.84% to 16,683.93, reversing a more than 1% loss in early trade, after a stronger yen overnight put stocks under pressure.

The yen weakened later in the session as well, and was last 0.1% weaker at JPY 100.43 per $1.

Major exporters followed the benchmark to reverse their losses and finish mostly higher, Fujitsu up 0.09% and Toyota adding 1.64%, though Nissan finished down 0.73% and Sony slipped 0.09%.

On the mainland, the Shanghai Composite finished up 0.59% to 2,997.88, while the Shenzhen Composite added 0.75% to settle at 1,981.26.

South Korea’s Kospi managed to finish 0.77% higher at 2,062.84, while Hong Kong’s Hang Seng Index was 1.09% higher at 23,571.90.

Asian markets managed to reverse earlier losses as the debate went on, with analysts attributing that to a perceived win for democratic nominee Clinton.

“Leading into the debate, traders were long volatility, anticipating a Trump victory and risk-off session,” said ThinkMarkets senior market analyst Matt Simpson.

“But as soon as traders caught a whiff of Donald's defeat, short bets were closed and risk sentiment improved.”

Oil prices were lower during Asian trading, after reaching higher on Monday, with volatility and uncertainty taking over as OPEC oil producers met on the sidelines of an energy conference in Algeria.

Some analysts had hope that the elusive production freeze could emerge from the meeting, though many had their doubts.

Brent crude was last down 1.52% at $46.64 per barrel, with West Texas Intermediate losing 1.37% to $45.31.

In Australia, the S&P/ASX 200 finished down 0.47% to 5,405.90, with the weighty financials subindex finishing 0.79% lower, and the energy sector weighing by 0.75%.

Major regional banks were down in Sydney, with Australia and New Zealand Banking Group down 0.54%, Commonwealth Bank of Australia off 0.95%, National Australia Bank losing 0.21% and Westpac slipping 1.29%.

New Zealand’s benchmark S&P/NZX 50 also dropped, losing 0.2% to 7,252.92, led lower by healthcare technology firm Orion Healthcare, which fell 4.6%.

It came after chairman Andrew Ferrier told shareholders last week that the Kiwi’s strength was putting pressure on revenue in local currency terms.

The down under dollars were both stronger on the greenback, with the Aussie last ahead by 0.36% at AUD 1.3049 and the Kiwi strengthening 0.41% to NZD 1.3690 per $1.