Asia report: Most markets higher as dollar continues decline

In Japan, the Nikkei 225 lost 0.76% to close at 23,940.78, as the yen strengthened 0.73% against the dollar to last trade at JPY 109.50.

The falling dollar hit the country’s major exporters hard, with carmakers, banks and manufacturers down almost across the board.

Automation and control systems giant Fanuc lost 3.67%, while on the technology front, Nikon was off 1.14% and Sony slipped 5.06%.

Fresh trade data out of Tokyo showed Japan’s exports were up 9.3% year-on-year in December, missing Reuters-polled expectations for a 10.1% improvement.

It wasn’t all bad news, however, with exports from Japan to other Asian markets reaching a new record during the month.

On the mainland, the Shanghai Composite was ahead 0.4% at 3,560.73, and the smaller, technology-heavy Shenzhen Composite rose 0.51% to 1,960.93.

Shares in Leshi Internet Information and Technology returned to trading after a nine-month halt, before reaching the 10% daily fall limit.

Meanwhile, HNA Investment Group announced a suspension in trading pending an announcement, although no further details were given.

South Korea’s Kospi eked out gains of 0.06% to 2,538.00, while the Hang Seng Index in Hong Kong was up just 0.08% at 32,958.69.

Technology plays were mixed in Seoul, with Samsung Electronics up 0.37% and SK Hynix rising 1.57%, while LG Electronics fell 6.39%.

Trade concerns were high on the agenda during the Asian day, after US President Donald Trump approved new tariffs on solar cells and certain types of washing machines earlier in the week.

“Outside of stepping away from the Trans-Pacific Partnership, this was the first real shift from protectionist rhetoric to actual action against China and others,” noted economists at ANZ Research.

South Korea’s government said it would raise the issue with the World Trade Organisation on Tuesday, with its two largest tech names - Samsung and LG - set to be affected by the washing machine tariff.

Oil prices were mixed, with Brent crude last down 0.19% at $69.83 per barrel, and West Texas Intermediate rising 0.16% to $64.57.

In Australia, the S&P/ASX 200 added 0.29% to settle at 6,054.70, with the hefty financials subindex up, while the materials and telecoms sectors were in the red.

Of the region’s big banks, Westpac Banking Corporation managed gains of 0.39%, while on the mining front BHP lost 0.36% and Rio Tinto was off 0.39% in Sydney trading.

The bad news for miners came after base metals prices slipped overnight, amid a softening in demand from China.

Across the Tasman Sea, New Zealand’s S&P/NZX 50 added 0.2% to close at 8,324.09, led higher by Pushpay Holdings, which rose 5.5%, while Metro Performance Glass was the biggest loser, settling down 2.1%.

Both of the down under dollars were stronger on the greenback, with the Aussie last ahead 0.86% at AUD 1.2393, and the Kiwi advancing 0.66% to NZD 1.3509.